Binance, a blockchain ecosystem and cryptocurrency infrastructure provider, has been ordered to cease operations in Nigeria after being declared an illegal crypto trading platform.
Nigeria’s Securities and Exchange Commission (SEC) issued the directive on Friday, discouraging crypto investors from using the platform as Binance is neither registered nor regulated and its operations in the country were illegal.
In a circular, the SEC said: “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.
“Nigerian investors are hereby warned that investing in crypto-assets is extremely risky 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 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.”
The development in Nigeria comes as Binance has been expanding its footprint on the continent.
The cryptocurrency infrastructure provider recently added support for more African countries – Angola, Botswana, Namibia, Mozambique, Zimbabwe and Zambia.
This expansion is aimed at bolstering Binance’s presence on the continent, where cryptocurrencies have seen a lot of interest and adoption in recent years.
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