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Thu, Aug 3, 2023 10:25 AM

The Nigerian Securities and Exchange Commission Issues Warning Against Binance

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The Nigerian Securities and Exchange Commission Issues Warning Against Binance
The Nigerian Securities and Exchange Commission (SEC) has issued a warning to local investors regarding the use of Binance, one of the world's largest cryptocurrency exchanges. The SEC cites the absence of a valid license and highlights the risks associated with investing in cryptocurrencies.

The Nigerian Securities and Exchange Commission (SEC) has recently issued a warning to local investors about the use of Binance, one of the world's largest cryptocurrency exchanges. This cautionary measure comes in response to a previous circular issued against a fraudulent company that was illegally using the Binance brand.

In a statement released on July 28, the SEC advised against investing with Binance, stating that the exchange does not have a valid license for operations in the country, making its activities illegal. The commission also emphasized the significant risks associated with investing in cryptocurrencies, highlighting the potential for substantial financial losses.

"Any member of the investing public dealing with the entity, making such solicitation is doing so at his/her own risk," the SEC stated.

This is not the first time the SEC has taken action against Binance. In June, the commission published a similar circular, limiting the activities of Binance Nigeria, which was proven to be a fraudulent entity unaffiliated with the legitimate Binance exchange. In response, Binance issued a cease and desist notice to Binance Nigeria.

It is worth noting that Nigeria has maintained a cautious approach to the crypto industry despite its efforts to promote the central bank digital currency (CBDC), known as the eNaira, which was launched in 2021. However, the adoption rates of the eNaira have fallen below expectations, leading the central bank to explore options to boost its usage.

In July, the CBDC system was upgraded with near-field communication technology, enabling more convenient and secure contactless payments. Furthermore, Nigeria implemented a 10% tax on gains from the sale of digital assets, including cryptocurrencies, starting from May 2023. This measure has been criticized by local stakeholders as "premature."

When contacted for additional comments regarding the SEC notice, Binance has not provided any further statements at this time. The SEC demands an immediate cessation of services in Nigeria from Binance and other unregistered platforms.

Overall, the regulatory body aims to safeguard local investors and uphold the legality of financial activities within the country's borders.

Source of content: OOO News 2023-08-03 News

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