Nigeria SEC tag binance operations illegal

[Zaguru12]

Nigeria security and Exchange commission has just tagged the operation of Binance Nigeria exchange as illegal in the country. The countries subsidiary of the global Binance commission was deemed illegal because it has been operating and promoting its services in the country without registration and not under regulations. The SEC warns Nigeria investors of investing or trading on cryptocurrencies on unregulated platforms like Binance. This action by the SEC follows suit after the exchange subsidiary in US was also sued for lack of regulation last week.


What the SEC Said

“The attention of the Securities and Exchange Commission (the Commission) has been drawn to the website operated by Binance Nigeria Limited, soliciting the Nigerian public to trade crypto assets on its various web and mobile-enabled platforms.”

“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”.
“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 concerning 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.”

nairametrics.com


how do think the market or Nigerian investors will react to this?

[Rruchi man]

how do think the market or Nigerian investors will react to this?

They said any investor or individual still operating with them is doing so at his/her own risk, which means that they cannot shut their operations down, and are just saying that anything wey you take your eye see, when you dey use them, say na only you know.

The major problem is that they are operating unregulated and unregistered.

The status of bitcoin has always been illegal to many Nigerians, it will not change and will not stop people in the country from using binance.

The only time Nigerians will stop binance usage is if the exchange crumbles from the top.

[Hyphen(-)]

how do think the market or Nigerian investors will react to this?

It will actually cause panic especially for people that only rely on Binance and don’t know any other exchanges and still lack knowledge about how decentralized exchanges and wallets work.

At this points, this is a serious problem to Bianace but I trust Nigerian government especially as President Bola Tinubu is showing a bit interest on blockchain technology, there will be a chance for Binance to review this and get themselves regulated in the proper way.

I know this issue was raised as a result of the ongoing case between Binance and US, but I am sure once they are done, ours too will be regulated fully.
Nevertheless I don’t think this will affect our normal p2p transactions on Binance.

[Charles-Tim]

How about other international exchanges? Are they registered in Nigeria? I doubt that. Why only Binance. The regulation may come easily and later get tough in a way all exchanges have to follow Nigeria regulatory laws.

The only time Nigerians will stop binance usage is if the exchange crumbles from the top.

How about Nigeria government to directly block Binance just like what they did to Twitter when it was banned. Or telling Binance not to provide its products and services to Nigeria anymore.

See what happened recently in Canada as Binance, OKX and Bybit decided not to operate anymore to Canadians. Regulators can start in a way to make strict regulations to become effective in a way government will pass it in a bill.

At this points, this is a serious problem to Bianace but I trust Nigerian government especially as President Bola Tinubu is showing a bit interest on blockchain technology, there will be a chance for Binance to review this and get themselves regulated in the proper way.

What SEC may indirectly be planning, is to regulate custodial exchanges.

[EarnOnVictor]

I see this news as another hypocrisy, it's not today that Binance has been serving Nigerians but our SEC didn't say anything about it specifically until the US is dealing with it and Coinbase. Binance has been so clever this day, I don't believe they have any office in Nigeria, they only have agents. This, of course, is not good for the Nigerian government despite the company making huge amounts from Nigerians, which means the government is losing taxable income.

But for SEC to come out again today is nothing new, it can't be as scary as what CBN and banks did in the past, yet crypto dealings continue in Nigeria. Still, a special warning to those who have big money there, it might be time you distribute your assets to many exchanges. Binance is always in the business of seizing money because of "risk management."

In case you don't know, measures to counter panic withdrawal are part of it.

how do think the market or Nigerian investors will react to this?

Binance has been pressured already and it also drags cryptocurrency with it. This news will not have much effect on the market, if any, since it's not a lawsuit or a penalty, it's just a declaration of what is already there.

[Asiska02]

how do think the market or Nigerian investors will react to this?

The news will have no effect on the market because of where it is coming from. This is just one exchange and not more than one only, amongst the many exchanges we have operating in Nigeria.
Many Nigerians will be surprised by this news and will have fear in them by this news. Nigerian investors already know what lead to the ban of Binance operations in Nigeria and I’m sure they know what to do if they still continue using their services. After all, the government only warn those that’ll continue using it that it’ll be at their own risk.

How about other international exchanges? Are they registered in Nigeria? I doubt that. Why only Binance. The regulation may come easily and later get tough in a way all exchanges have to follow Nigeria regulatory laws.

The past government didn’t wanted anything to do with cryptocurrencies, so it didn’t even allow SEC to have anything connected with crypto. This news is coming after Binance listed BTC/NGN trading on their platform, but this is not convincing enough to be the reason that warranted this. This new government have showed interest in blockchain technology and cryptocurrency even during campaigns, they might want to regulate its use and also tax citizens for using it furthermore. If this is achievable with Binance, other exchanges will have no choice than to pay for their services here in Nigeria.

how do think the market or Nigerian investors will react to this?

Binance has been pressured already and it also drags cryptocurrency with it. This news will not have much effect on the market, if any, since it's not a lawsuit or a penalty, it's just a declaration of what is already there.

The government will definitely looks for means of generating more revenue for the economy wellbeing of the nation. This might be one of the ways it plans to do that, no corporation, both international and local will be left untouched in order to maximise tax collection.

[Mate2237]

Binance dey face very serious attack from all corner in di world. I'd it dat di downfall of Binance has near? I am tired of the whole matter. Why Binance and Coinbase now? I have not heard it from the Nigeria angle but from Canada and other lawsuits. I just dey pray day they should pass this hard time and come out with stronger winds.

Security and Exchange Commission (SEC) in Nigeria e just dey follow other kwantries to do things. They can't do anything on their own. Because dem hear sae Binance dey under attacked by other countries demselves Carey their own come sae dem dey here too. Nonsense sec.

[cabron]

They must have been following orders from Gensler. If binance.com still accessible by Nigerians, I don't see any effect, the only that is deem illegal is just the local binance.

The local exchanges may still be in operation. Even if the local binance will be shutdown, there are a number of local exchanges operating. If the government really oppose the use crypto, they would have tagged them all as well. This is merely an attack to binance alone.

[Zaguru12]

how do think the market or Nigerian investors will react to this?

The news will have no effect on the market because of where it is coming from. This is just one exchange and not more than one only, amongst the many exchanges we have operating in Nigeria.
Many Nigerians will be surprised by this news and will have fear in them by this news. Nigerian investors already know what lead to the ban of Binance operations in Nigeria and I’m sure they know what to do if they still continue using their services. After all, the government only warn those that’ll continue using it that it’ll be at their own risk.

Where I see the news having effect is the adoption rate. Yes many knowledgeable people will see this as just an exchange under pressure and since they have other international and local exchanges then they could easily trade there. But the less knowledgeable ones will definitely take this as a sign that the government is banning the entire crypto and some will spread this stereotype and it could lead to discouraging many people and possibly slow down adoption.

The other thing is the government seems to be a little bit confused because around September last year they actually did a collaboration with binance to help spread or teach some selected citizens about blockchain. So why did this honeymoon didn’t last long between this two. Or is the Nigerian SEC seeing it is the right time to get binance regulated since even the US is have same issue with them?

[Igebotz]

I see this news as another hypocrisy, it's not today that Binance has been serving Nigerians but our SEC didn't say anything about it specifically until the US is dealing with it and Coinbase. Binance has been so clever this day, I don't believe they have any office in Nigeria, they only have agents. This, of course, is not good for the Nigerian government despite the company making huge amounts from Nigerians, which means the government is losing taxable income.

But for SEC to come out again today is nothing new, it can't be as scary as what CBN and banks did in the past, yet crypto dealings continue in Nigeria. Still, a special warning to those who have big money there, it might be time you distribute your assets to many exchanges. Binance is always in the business of seizing money because of "risk management."

It is within the SEC's authority to control and tax every security and digital asset within the Nigeria jurisdiction, and as Binance Nigeria Limited is operating and has an office here in Nigeria, they must be regulated and taxed accordingly.

How about other international exchanges? Are they registered in Nigeria? I doubt that. Why only Binance. The regulation may come easily and later get tough in a way all exchanges have to follow Nigeria regulatory laws.

Other exchanges do not have offices here in Nigeria except Binance

[Charles-Tim]

It is within the SEC's authority to control and tax every security and digital asset within the Nigeria jurisdiction, and as Binance Nigeria Limited is operating and has an office here in Nigeria, they must be regulated and taxed accordingly.

How about other international exchanges? Are they registered in Nigeria? I doubt that. Why only Binance. The regulation may come easily and later get tough in a way all exchanges have to follow Nigeria regulatory laws.

Other exchanges do not have offices here in Nigeria except Binance

Oh! Thanks for letting me know this because I did not know before. Likely you are correct. But is this not another SEC inadequate means of knowing the right things to do to make crypto regulation effective? Or maybe this is just the beginning. There are many other exchanges too that Nigerians are using and have naira to crypto P2P exchanges, they are not much of a difference from Binance too, all of them need to be regulated just like what they are trying to do with Binance.

[SmartGold01]

I don't even know how our country are doing their own operation at all, okay, do i say US are the people who is now opening their eyes to act towards Binance. Main while Binance has been in operation in Nigeria for years now no effect and no action has been taken. Due to their restriction of her citizens Binance now create another means of Nigerian's crypto lover's to start trading freely without any restriction, today again after the u.s has filed a case against Binance.us does that also mean they should raised alarm on how Binance is illegally extorting and operating in our country?

Well I don't have something much to say about this being that, this is the only means we are buying and converting our crypto assets through p2p, I am shocked seeing that our country are just opening their eyes for the first time.

[Igebotz]

It is within the SEC's authority to control and tax every security and digital asset within the Nigeria jurisdiction, and as Binance Nigeria Limited is operating and has an office here in Nigeria, they must be regulated and taxed accordingly.

How about other international exchanges? Are they registered in Nigeria? I doubt that. Why only Binance. The regulation may come easily and later get tough in a way all exchanges have to follow Nigeria regulatory laws.

Other exchanges do not have offices here in Nigeria except Binance

Oh! Thanks for letting me know this because I did not know before. Likely you are correct. But is this not another SEC inadequate means of knowing the right things to do to make crypto regulation effective? Or maybe this is just the beginning. There are many other exchanges too that Nigerians are using and have naira to crypto P2P exchanges, they are not much of a difference from Binance too, all of them need to be regulated just like what they are trying to do with Binance.

The SEC was overshadowed by the current CBN administration, or should I say that the SEC was incompetent and didn't know what their duties were because most security and digital assets were regulated by the CBN rather than the SEC, and according to what I read, the SEC once listed crypto as safety security asserts and were in disagreement with the CBN Governor for placing a ban on crypto trading without their consent. I guess the SEC is back in action after the recent controversy with the CBN Governor.   

BTW, just because a CEX has naira trading pairs on their exchange does not make them taxable to the Nigerian government if they operate in other jurisdictions.

[Wiwo]

First I don't see anything wrong in the move by the sec to regulate the cryptocurrency exchanges and other payment agents that transact and have offices in Nigeria to get regulated and taxed, I believe the cryptocurrency market in Nigeria is producing a lot of volumes and in other, for the government to get access to this payments to get it taxed is through the cryptocurrency services such as centralized exchange and if you may ask me I will say that this move by the sec is long overdue

How can binance have binance Nigeria without being registered and taxed yet before any Nigerian could operate a binance account they need to get verification, this is one of the regulatory compliance we always talked about., binance have to go through the various process of registration and paying the necessary fees.

[Smartvirus]

how do think the market or Nigerian investors will react to this?

They said any investor or individual still operating with them is doing so at his/her own risk, which means that they cannot shut their operations down, and are just saying that anything wey you take your eye see, when you dey use them, say na only you know.

The major problem is that they are operating unregulated and unregistered.

The status of bitcoin has always been illegal to many Nigerians, it will not change and will not stop people in the country from using binance.

The only time Nigerians will stop binance usage is if the exchange crumbles from the top.

From the bottom rather than the top.
The matter be say, the idea of cryptocurrency no be watin any government around the world buy and as e be like that, no policy or literally piece way them go bring way go put crypto on a better side for people to deal. I remember some time ago way government been dey try run some affiliation with binance and people been dey reason if na trap.

Watin I dey think now be say, them been dey try put body with Binance before via say them go try infiltrate there system through regulations and get certain details of p2p users. Na just watin I dey think shah.

The description them don put up there no dey any different frm watin them go talk about Bitcoin. This one no be warning, na just anothereans to spread FUD.

[CryptopreneurBrainboss]

Nigeria security and Exchange commission has just tagged the operation of Binance Nigeria exchange as illegal in the country. The countries subsidiary of the global Binance commission was deemed illegal because it has been operating and promoting its services in the country without registration and not under regulations. The SEC warns Nigeria investors of investing or trading on cryptocurrencies on unregulated platforms like Binance. This action by the SEC follows suit after the exchange subsidiary in US was also sued for lack of regulation last week.

Firstly wetin Nigeria SEC dey do no bad, they're protecting the citizens of the country and no matta weda we like am or not they're right with what they just came out to say. Understand say them no dey attack Binance generally but Binance Nigeria just as United States they attack Binance US so. Na follow follow make us do our own now and you no go blame them because na the perfect timing be this for their choppings to come out. Nigeria SEC just want Binance Nigeria to register under them as na so e dey be for this kind business them. Also wetin SEC dun come out talk so, na just warning to Nigerians make e no be like say dem no warn us Incase anything bad was to happen (and I dey suspect say dem believe say US fit run Binance down and e go affect us Nigerian).

All dem dey talk na say anything wey you dey do with Binance Nigeria na at ur own risk, just as them warn us for those ponzi schemes wey we been dey chase around dey through millions so inside. Nigeria SEC wan get their own cut (we know as e dey be) because immediately dem register officially nothing concern Binance Nigeria with SEC again unless dem break rules of the commission then dem go carry EFCC and DSS come pick up who dey head the exchange for Nigeria. All this one fit just be talk talk matter too and nothing go still happen.

[Kelward]

If no be say di OP mention America, say dem get issues with binance too, I for conclude say our financial institutions de witch hunt crypto matter for our country. I no know whether e de proper for SEC to de monitor binance, but if e de proper, make dem allow de regulatory body de see to dem matter, so we go fit rest for di matter and trade with bitcoin in peace. I no de happy say dem de mention ban and suspension for bitcoin and crypto matter in general.

[gabbie2010]

Nigeria security and Exchange commission has just tagged the operation of Binance Nigeria exchange as illegal in the country. The countries subsidiary of the global Binance commission was deemed illegal because it has been operating and promoting its services in the country without registration and not under regulations. The SEC warns Nigeria investors of investing or trading on cryptocurrencies on unregulated platforms like Binance. This action by the SEC follows suit after the exchange subsidiary in US was also sued for lack of regulation last week.

Firstly wetin Nigeria SEC dey do no bad, they're protecting the citizens of the country and no matta weda we like am or not they're right with what they just came out to say. Understand say them no dey attack Binance generally but Binance Nigeria just as United States they attack Binance US so. Na follow follow make us do our own now and you no go blame them because na the perfect timing be this for their choppings to come out. Nigeria SEC just want Binance Nigeria to register under them as na so e dey be for this kind business them. Also wetin SEC dun come out talk so, na just warning to Nigerians make e no be like say dem no warn us Incase anything bad was to happen (and I dey suspect say dem believe say US fit run Binance down and e go affect us Nigerian).

All dem dey talk na say anything wey you dey do with Binance Nigeria na at ur own risk, just as them warn us for those ponzi schemes wey we been dey chase around dey through millions so inside. Nigeria SEC wan get their own cut (we know as e dey be) because immediately dem register officially nothing concern Binance Nigeria with SEC again unless dem break rules of the commission then dem go carry EFCC and DSS come pick up who dey head the exchange for Nigeria. All this one fit just be talk talk matter too and nothing go still happen.

This is official response from Binance telegram link
I don't think there is any cause for alarm because of SEC warning against cryptos and tagging Binance as illegal from my own point of view SEC is just trying to copycat US SEC as you rightly said even Binance chart had recently included BTC/NGN on there trading platform that means we can easily buy Bitcoin with naira and from all indication SEC dey try to lure Binance for a possible collaboration wey go give room for imposing tax on crypto related transactions, it's been a long time wey people dey trade cryptos so many of them knew say crypto no bi ponzi scheme and now one yeye SEC think say them fit discourage people from it

[sokani]

Firstly wetin Nigeria SEC dey do no bad, they're protecting the citizens of the country and no matta weda we like am or not they're right with what they just came out to say. Understand say them no dey attack Binance generally but Binance Nigeria just as United States they attack Binance US so. Na follow follow make us do our own now and you no go blame them because na the perfect timing be this for their choppings to come out. Nigeria SEC just want Binance Nigeria to register under them as na so e dey be for this kind business them. Also wetin SEC dun come out talk so, na just warning to Nigerians make e no be like say dem no warn us Incase anything bad was to happen (and I dey suspect say dem believe say US fit run Binance down and e go affect us Nigerian).

All dem dey talk na say anything wey you dey do with Binance Nigeria na at ur own risk, just as them warn us for those ponzi schemes wey we been dey chase around dey through millions so inside. Nigeria SEC wan get their own cut (we know as e dey be) because immediately dem register officially nothing concern Binance Nigeria with SEC again unless dem break rules of the commission then dem go carry EFCC and DSS come pick up who dey head the exchange for Nigeria. All this one fit just be talk talk matter too and nothing go still happen.

There's a lot of money to be made here if SEC are able to tax most of these exchanges operating in Nigeria, not just Binance Nigeria alone. Nigeria has the highest number of crypto enthusiasts in Africa but the ban of cryptocurrency has kind of hampered SEC's effort to go after these crypto platforms. But with the recent turn of event, I think they are no more limited and will go all out to collect their own "choppings" from both local and foreign exchanges operating in Nigeria.

I don't think there is any cause for alarm because of SEC warning against cryptos and tagging Binance as illegal from my own point of view SEC is just trying to copycat US SEC as you rightly said even Binance chart had recently included BTC/NGN on there trading platform that means we can easily buy Bitcoin with naira and from all indication SEC dey try to lure

I don't expect them to say otherwise and the statement released by Binance Nigeria is to calm their users. They are not registered in Nigeria because if they were SEC wouldn't have said so and I think why SEC is coming out now could be because of the newly signed financial act that made provision for cryptocurrency.

[Charles-Tim]

The reason SEC said Binance is operating illegally in Nigeria is because they thought that Binance has an office in Nigeria. But Binance CEO, Changpeng Zhao said the exchange do not have an office in Nigeria and said they have issued cease and desist notice to the scammer entity "Binance Nigeria Limited".

https://twitter.com/cz_binance/status/1670369403223900160?s=20

There's a lot of money to be made here if SEC are able to tax most of these exchanges operating in Nigeria, not just Binance Nigeria alone.

Most of the crypto exchanges that Nigerians are using do not have office in Nigeria. That is what SEC supposed to work towards, or the exchanges should be cut out of providing bitcoin and other crypto services to people in Nigeria. The exchanges are making huge amount of money from Africa this way, but African regulators have failed to realize this.

Let us see what Nigeria SEC and other regulatory bodies are up to, or they will show us again that they are not competent to handle anything pertaining to crypto again.