Nigerian regulator halts Binance activities: report

It’s been a tough week for cryptocurrency exchange Binance. On June 9, the Securities Authority of Nigeria declared the exchange illegal, just days after Binance was charged by the US Securities and Exchange Commission.

“Binance Nigeria Limited is hereby directed to immediately cease soliciting Nigerian investors in any form,” the Nigerian Securities and Exchange Commission (SEC) said in a statement seen by Bloomberg.

The regulator also noted that Binance is not registered or regulated in the country, making its activities illegal. “Any member of the investing public who trades with the entity does so at their own risk,” the committee said.

Allegedly, Binance US Is Putting Clients’ Funds at Risk. Anyone with proof will do millions of people a lot of good.

— Son of Timothy (@ObiUcheUzoije) June 7, 2023

The setback comes just days after Binance was sued by US authorities. The US SEC filed 13 charges against Binance on June 5, including allegations of unregistered offerings and sales of securities, failure to register as an exchange or broker, and misdirection of funds. The company said it has provided all the information regulators need and looks forward to “defending ourselves in court.”

Binance is a popular crypto exchange in Nigeria. It is one of the most prominent crypto hubs in the region and the most populous country in Africa. A study by Chainalysis shows that the Middle East and North Africa lead global cryptocurrency adoption, with users receiving $566 billion worth of cryptocurrencies between July 2021 and June 2022, a 48% increase from the previous year.

The ban follows recent regulatory developments within the local crypto ecosystem. On May 28, former President Muhammadu Buhari signed the Finance Act, introducing a 10% tax on profits from digital assets. The newly elected Nigerian President, Bola Tinubu, recently released a manifesto proposing to review the Nigerian SEC’s regulations on digital assets to make them more business-friendly.

The Central Bank of Nigeria does not recognize cryptocurrencies as legal tender and commercial banks have been banned from conducting crypto transactions in the country since February 2021.

Cointelegraph contacted Binance but did not receive an immediate response.

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