The Securities and Exchange Commission reported a form of a circular letter containing some important information about the irregularities of Binance Nigeria’s limited operations in the country via the web-based platform and its mobile app. The crypto market has reportedly enthused the local market to indulge in trading available digital assets on the Binance crypto network despite its outstanding with the SEC.
The SEC circular report is focused on connecting distributed information to a large number of people that Binance Nigeria is yet to be officially registered for the commission’s regulatory affairs. The SEC stamp to approve the crypto network in Nigeria is absent which makes Binance Nigeria an illegal 9operations in the country that could lead to confiscation of digital assets if operations and services are continued by the crypto company.
According to the SEC circular report, “Binance Nigeria Limited is neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk. As the regulator with the statutory mandate of investor protection, the Commission urges Nigerians to be wary of investing in crypto-assets, and crypto-asset-related financial products and services if the service provider/its platform is not registered or regulated by the Commission.”
The SEC circular letter is a mandatory update to concerned consumers that need to be protected by the commission that urges Nigerians to be cautious while dealing with digital or crypto assets, especially on the Binance crypto network. The SEC Nigeria is another fraction of the SEC embodiment that looks out for the country’s citizens in terms of the regulatory system that powers its commission.
The circular report was quite focused on urging Nigerians to quit holding crypto-inclined assets due to the high risks attached to the crypto market. In avoidance of loss of investment, Nigerians should liquidate all active assets from the Binance crypto network, or else they are faced with “extreme risk and may result in total loss of their investment.”
“By this circular, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever.”
The SEC said that its commission will relentlessly scold unregistered platforms and the likes of Binance Nigeria will be dealt with accordingly. The regulator also said that more updates will be made available for users to comprehend the commission’s actions on dealing with Binance and other platforms that partnered with the crypto company.