Bitcoin Forum

 Binance Exchange is facing another challenge as the Nigerian SEC declared Binance Exchange service activities illegal, claiming that
The SEC is currently advising Nigerians to avoid making any purchases of crypto assets on the exchange.
What do you think about this?
Are Binance users secure worldwide? Or will these restrictions and the ban on Binance activity spread globally?

This is onr of the effects of leaving our bitcoin on centralized exchanges.

Source: https://gazettengr.com/just-in-sec-bans-binance-operation-in-nigeria-declares-it-illegal-entity/

This is not a ban. But it is like a means that Nigeria SEC is using to planning to regulate exchanges. But I wonder why only Binance, when other international exchanges are just like Binance.

Other big exchangers are also facing similar restrictions "Huobi, Bybit, and Kucoin"
Just like you said countries are starting to regulate crypto exchangers. They can no-longer be ignored because maybe they found out that they are dealing with fiat currencies which they need a license in order to operate.

Why this time? From crypto ban to crypto taxation. This new Nigerian government is moving very quickly in every aspect. So many changes have occurred in the country in a short period. Nigerians don't know what news they'll hear when they wake up the following day.

I don't want to think that the SEC is moving to ban Binance operations in Nigeria, declaring it an illegal entity.

Binance Response to SEC and Nigerians

I don't know what the SEC wants, lately I saw the SEC very aggressively suing against Binance, four days ago I saw the SEC suspecting CZ of embezzling funds, in a related web mix, Binance in the US is also facing the same problem, allegations of illegal transactions, although there have been several objections that have been made by related parties, but it has not stopped the SEC in a lawsuit that will be tried, in the UK they also had the same problem of a ban on Binance, now it's happening again in Nigeria the same problem is a ban on Binance, I'm really confused about all of that, I don't know who is right and who is wrong.

I think the war between SEC vs. Binance just started, they often make statements and rebuttals, both sides claim each other, feel innocent and want to win, In my opinion, this is really a goal that has not yet been seen and confirmed the direction of crypto development for the future, I hope the SEC vs. Binance can have a positive impact in the future, even though the crypto market is currently down.

I believe the entity is different. I don't think the Nigerian SEC has the same goal as the US SEC. As far as I'm aware, in my country, the same thing happened a few months ago. As of now, crypto exchanges need to register locally, have an office here, and so on before they can operate legally. The goal is to make crypto taxation easier, or in other words, exchange will help the government to record and to tax every trade made on their platform. Basically, the government wants some control and earns more taxes from the industry. I won't be surprised if this is the goal here. CMMIW.

I thought as much too, but I hope is for good.

As Charles-Tim stated, the Nigerian government is attempting to make everything totally regulated in order to oversee some of its activities and collect some revenue from any exchange operating in the country. However, I am curious as to why only Binance is being restricted currently. While other exchanges continue to operate unregulated.

I think this is the reason why the Nigerian SEC reacted and with the current case of between Binance and US SEC.

There is nothing much to think about this. The problem with Binance is that they are kind of sneaky. They want to operate in a country without going through the process. They want to make money out of the market of a country without securing a license. Without being registered, it means Binance isn't paying any taxes. But the point is really simple. Without a license, it is operating illegally. So once the authorities know about this, they will surely make them stop whatever it is they are doing.

I'm not sure how much this is part of the SEC's "witch ^{Binance &crypto} hunt". Rather, I would say that the Nigerian government is very intent on controlling all money flows as much as possible. Binance is emphasized here only because of the current crisis with the SEC in the US.
I would consider this as an additional package of measures that the Nigerian government is implementing, and just a few months earlier they had another financial ban Nigerian banks suspend Int’l transactions on Naira visa debit card (https://sunnewsonline.com/nigerian-banks-suspend-intl-transactions-on-naira-visa-debit-card/)
It is obviously easier for them to suspend something than to adapt.

If that's the case maybe they should give a license to those exchange if they comply to the law since putting some restrictions like that because they want to control those companies is no sense at all. We don't know the real intention of these guys since maybe they want extra kick back because they see that they can take advantage on what's currently happening with this exchange especially with Binance in US.

Do other popular exchanges that Nigerians are using also have their branches opened, like Binance has with Binance Nigeria Limited? 

Btw, what's the situation over there, which of the top exchanges Nigerians can use?

I do not think so. I only know Binance to have office in Nigeria among the ones I mentioned just below.

Nigeria are using other exchanges like OKX, Kucoin, Bybit, Huobi Global. I mean they also have naira to crypto means of exchange and requiring KYC for naira to crypto and vice versa. They are nothing more than other Binance-like exchanges. Maybe the Nigeria SEC do not know much about these exchanges yet. If they want to regulate Binance, they should regulate other exchanges that are providing crypto products and services to Nigerians too.

And them making this comment now, is it because of what SEC has done in the US and they want to look relevant now...

Just out of curiosity,  how many of these known exchanges accessible to Nigerians are regulated by the Nigerian SEC ??

Does Nigeria have the regulation for crypto exchanges??

Whatever the outcome from all this, the blackmarket will find relevance once again and its very easy with crypto, but hope it doesn't come to this by finding a way to coexist !

Because it's not registered or licensed on their countries' crypto businesses record? Any international businesses that are accepting from X countries' people will always be needed to get a business licensed and follow its regulations either it's crypto regulation or not or else it will be labeled as illegal operations.

Maybe that's the answer to your question and reason why your SEC is only targeting Binance and not the other exchanges (at least not yet). In the same way, SEC in the United States is also attacking Binance US only and not the global Binance.

This information will have little or no impact on the market. I believe the Nigerian government is simply searching for a way to regulate the use of cryptocurrencies by imposing tax on the exchanges that operate in the country to generate revenue for the country. This could be the cause for the ban, and if they are successful with Binance, they may come after the rest of the exchanges operating in Nigeria. Binance was possibly targeted because of its big user base in Nigeria, compared to other exchanges that citizens utilize there.

An interesting development in this case: CZ twitted yesterday that "Binance have issued cease & desist notice to the scammer entity Binance Nigeria Limited", meaning they claim that they have nothing do with that company that was banned by SEC.

https://www.talkimg.com/images/2023/06/19/HQJuo.jpeg
https://twitter.com/cz_binance/status/1670369403223900160

Yes, I was also going to post this. The "Binance" company in Nigeria actually doesn't have anything to do with the real binance exchange. It's just a copycat exchange some people created with the (I read this) hope that one day they can sell it to Binance. A weird strategy if you ask me, considering that most exchanges are banned in Nigeria.

Seems a huge pressure happened on binance, I just want to know how this going to end but first I just hope the crypto related things won in the US market so we can see more mini bull run.

Maybe a lot of countries will do the same to binance unless binance gaining more license or buy another local exchange

It seems that this is what we're seeing and it's a global thing for Binance. Because recently, I've just seen a headline that's related again to them and it's about money laundering in France.

--> https://www.reuters.com/technology/binance-under-investigation-france-illegal-canvassing-le-monde-2023-06-16/

This is too much for Binance, I guess they need to fix their internal affairs before going on with the compliance that's being asked to them in different regions and countries.

While they might admit or not and will have to say that this is another FUD. The image that these news brings to them isn't really good for them and its reputation.

Dunno, to me more plausible explanation is that people behind this fake Binance tried to scam Nigerians out of their money, rather than selling this company to Binance. But I agree, weird move indeed,

Check the recent news of CZ regarding the binance in Nigeria because its not related to them. It might ring a bell on the binance reputation but after knowing that the "Binance" in Nigeria isn't theirs, it will come to light that it won't affect them in the long run.

I see, that there are cons that have been using their name and the activity of this company is to do fraudulent things. Just as you've said, I've checked it out and it came from Binance's own website and the details were there.

--> https://www.binance.com/en/feed/post/660934