Nigeria Declared Binance Operations Declared Illegal, Asked to Discontinue

LI Network

Published on: 11 June 2023 at 19:33 IST

The Securities and Exchange Commission (SEC) of Nigeria has taken action against Binance, the largest cryptocurrency exchange globally, by issuing a directive to halt its operations within the country.

According to the SEC, Binance Nigeria Limited, the entity responsible for attracting Nigerian investors through its website, was found to be operating illegally as it had not obtained registration or regulation from the commission.

The SEC’s statement, dated June 9, explicitly ordered Binance to immediately stop soliciting Nigerian investors in any form. Binance has yet to provide a response or comment regarding this development.

In the US, Binance.US, the affiliate of Binance, announced that it would suspend dollar deposits and urged customers to withdraw their funds by a specified deadline, following a request from the SEC to freeze its assets.

Binance.US stated that its banking partners were preparing to halt dollar withdrawal channels. The SEC filed a lawsuit against Binance, its CEO Changpeng Zhao, and the operator of Binance.US, marking an intensified crackdown on the crypto industry by US regulators. Coinbase, a major US exchange, was also sued by the SEC a day later.

Binance.US released a customer notice on Twitter, declaring that it would transition into a “crypto-only exchange” and would no longer accept dollar deposits. The platform criticized the SEC’s civil charges as “unjustified” and vowed to vigorously defend itself against the allegations.

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