The Securities and Exchange Commission of Nigeria (SEC) has severely cautioned against using Binance. According to a statement from the Commission, Binance’s activities and business practises in Nigeria are illegal.
According to the official circular, the platform for Binance, which can be accessible at www.binance.com, is “neither registered nor regulated by the Commission.” In Nigeria, the SEC has issued a warning to the investing public, informing them that dealing with Binance or any other company is at their own risk if they are making similar solicitations.
According to the Commission, investing in crypto-assets carries a sizable amount of risk and there is a possibility that you could lose all you invested.
The SEC’s top goal is protecting investors, thus it has cautioned the investing public to use due diligence when buying products and cryptoassets from businesses that are not registered with or authorised by the Commission.
Furthermore, the circular commanded all platform providers engaging in such solicitations to “immediately stop soliciting Nigerian investors in any form whatsoever.” The Commission added that regulatory frameworks governing the activities of such operators and the platforms they use would be amended. It committed to collaborating with other Nigerian regulators to offer further guidance in this area.
This warning is being given as bitcoin laws all over the world become stricter. The SEC’s determination that Binance’s operations in Nigeria were illegal highlights the importance of observing local laws and the need for investors to exercise caution when transacting with unregulated enterprises.
According to the Commission, “Any member of the investing public dealing with the entity, making such solicitation, is doing so at his/her own risk.”
Investors and stakeholders are advised to be knowledgeable and adhere to the regulations established by regulatory bodies in order to reduce potential risks and losses.