Binance Affiliate's Operation Labeled as Illegal by Nigerian SEC

In a notice issued on June 9, the Nigerian Securities and Exchange Commission (Nigerian SEC) advised local residents not to trade with Nigerian Binance. The notice came less than 24 hours after troubled U.S. Binance was forced to suspend dollar deposits and withdrawals.

The commission said the local affiliate of crypto exchange Binance "is neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal." It also said anyone who continues to trade with Binance in Nigeria is "doing so at his/her own risk."

The Nigerian SEC labels cryptocurrencies an "extremely risky" asset class.

In addition, the SEC warned local residents of the risks of investing in crypto assets and related products, particularly when dealing with service providers that are not registered or regulated by it. At the same time, the regulator reiterated its opposition to investing in "extremely risky" assets.

To Nigerian Binance, the Commission said, "By this circular, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever."

The Commission also promised future updates on "regulatory actions against Binance Nigeria and other similar platforms."

Previously, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance entities and its founder Changpeng Zhao, and also sought an emergency court injunction to freeze assets held by Binance U.S.

(Source: Bitcoin.com)