The Nigerian Securities and Exchange Commission (SEC) has issued a circular ordering Binance Nigeria Limited to immediately cease operations in the West African nation. The notice stated, Binance Nigeria Limited is neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal. This follows a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) last week against Binance, the world’s largest crypto exchange by volume traded, alleging that it sold unregistered securities to the public without registering as a broker or exchange.
A Binance spokesperson told journalists that Binance Nigeria Limited is not affiliated with the company and that they are seeking clarity from the Nigerian SEC and remain committed to working with them cooperatively on the next steps.
Although the Nigerian SEC had previously said it viewed all crypto assets to be securities by default, this is the first action taken by the regulator against a platform. In May, Bloomberg reported that the SEC was processing crypto firms’ applications for registration on a trial basis, but would not officially start registering them until it has reached an agreement with the country’s central bank. Banks in the country are prohibited from offering services to crypto platforms.
The SEC’s order concluded, The Commission shall provide updates on further regulatory actions with respect to the activities of Binance Nigeria Limited, and other similar platforms and shall work with other regulators in Nigeria to provide further guidance on this matter.