The regulator also ordered all cryptocurrency platform providers to stop contacting Nigerian investors.
Binance’s actions are illegal in Nigeria, according to the country’s Securities and Exchange Commission, which also ordered other crypto platform providers to stop recruiting Nigerian individuals in a Friday warning.
According to the SEC, the post reissued a June 9 warning about a firm called Binance Nigeria Ltd. Binance told CoinDesk at the time that it was unrelated to the company. The SEC specifically mentioned the cryptocurrency exchange’s website in its notification on Friday.
“The commission again reiterates that the activities of Binance, https://www.binance.com and any such other platform through which the company solicits investors is neither registered nor regulated by the commission and its operations in Nigeria are therefore illegal,” the SEC said. The regulator ordered all platform providers affiliated with crypto to stop reaching out to Nigerian investors.
The SEC stated last year that it considers all cryptocurrency to be securities. The government has begun processing crypto exchange registration applications on a trial basis, but registration will not be completed unless an agreement is made with the central bank, which has prohibited local financial institutions from dealing with crypto service providers.
In broader terms, the Commission advised the public “to be wary of investing in crypto assets and other products offered or operated by entities not registered or regulated by the Commission.”
“By this circular, all platform providers making such solicitations are hereby directed to cease all solicitation of Nigerian investors in any form whatsoever,” it stated.