Abuja, Nigeria – (African Boulevard News) – The Nigerian Securities and Exchange Commission (SEC) has ordered Binance Nigeria Limited to cease all Nigerian investor solicitations immediately. On Friday, the regulatory body released a statement stating that the operations of Binance, a cryptocurrency trading platform, had been suspended. The SEC has also ordered Binance to close all existing accounts in Nigeria and pay a fine of $2.6 million for illegal operations.
The SEC claims that Binance has been operating in Nigeria without a license, which is a violation of the Investment and Securities Act 2007. In addition, the platform has been accused of conducting crypto transactions, which can only be performed by registered exchanges, without SEC consent.
“Binance is engaged in the business of trading securities without being registered or regulated by the Commission,” the regulator said in a statement Friday. “The actions of Binance amount to illegal securities activities.”
Binance has been operating in Nigeria since 2018 and had grown to become the third-largest Bitcoin exchange in the country. The platform was known for its ease of use and high trading volume. However, the SEC’s decision has put an end to its lucrative operations in the country.
The announcement has generated mixed reactions among industry stakeholders. While some investors have expressed disappointment over the closure of the platform, others have commended the SEC for taking action against illegal operators.
“The SEC is doing what it is supposed to do. We cannot allow unregulated exchanges to operate in Nigeria,” said Samuel Nzekwe, a financial expert. “Investors need to be protected, and operators need to abide by the law.”
Binance has yet to respond to the SEC’s allegations, but the platform has previously denied operating illegally in Nigeria. The company has also revealed plans to establish a regional office in the country and has hired a country manager to oversee its expansion.
The SEC’s decision is expected to have a significant impact on the crypto industry in Nigeria, which has been growing rapidly in recent years. Observers believe that the ruling will force other crypto exchanges operating illegally in the country to shut down or register with regulators.
In conclusion, the Nigerian SEC has taken a bold step in shutting down Binance’s operations in Nigeria, citing illegal activities. Investors and stakeholders in the crypto industry have expressed their mixed reactions, but the decision is expected to restore confidence in the industry and encourage other operators to fulfill their regulatory obligations.
