Binance, the world's largest crypto exchange, is facing regulatory hurdles again, this time in the African country of Nigeria. Last week, Nigeria's Securities and Exchange Commission (SEC) declared Binance's operations illegal in the country.
The SEC reminded again about a company called Binance Nigeria Ltd. in the notice, which Binance previously clarified that the company is not related to them. However, in this latest notice, the SEC specifically mentions the crypto exchange website.
Nigeria's SEC as the regulatory authority responsible for investor protection is warning the public about the high level of risk associated with investing in crypto assets. They emphasize that such investments can lead to a complete loss of invested funds.
The commission also advises the public to exercise caution when considering investing in crypto assets. They should not consider products offered by entities that are not registered or supervised by the Commission.
Nigeria has taken a firm approach to crypto. Last year, the SEC clarified that they consider all cryptocurrencies to be securities. The country has evaluated crypto exchange registration applications on a trial basis. However, they have delayed the full registration process until the SEC reaches an agreement with the central bank. The central bank's current approach prevents local financial institutions from dealing with crypto service providers.
Also, Nigeria's central bank has been pushing hard to use their Digital Naira CBDC. However, they face difficulties in gaining wider acceptance among consumers.
While Binance faced strong opposition in Nigeria, it received a warm welcome in the UAE. Most recently, Binance became the first exchange to obtain an operating license in Dubai.
