Bitrabo Editorial
Nigeria’s market regulator has issued a directive to suspend Binance’s operations within the country. The exchange’s local unit, which had been attracting Nigerian investors through its website, was declared illegal and operating without authorization.
Binance and its associated companies are facing a series of regulatory challenges following the recent lawsuit filed by the US Securities and Exchange Commission (SEC). The lawsuit has led to significant legal and regulatory difficulties for the cryptocurrency exchange and its associated entities, with the SEC accusing them of violating its regulations.
Regulatory Challenges Cloud Binance’s Future
Nigeria’s SEC issued a comprehensive set of regulations for digital assets in 2022 to enable the responsible and secure utilization of crypto assets in Nigeria. However, the recent directive by Nigeria’s regulatory body signifies that this balanced approach may not be sufficient.
The regulatory body has issued a warning to Nigerians against engaging with Binance’s local unit, cautioning them to be aware of the risks involved. The exchange has previously established itself as a market leader in Nigeria, with the collapse of FTX providing an opportunity for its growth.
The agency has directed the crypto exchange to cease facilitating investments from Nigerian individuals on its platform and warned that regulatory action may be taken against cryptocurrency exchanges, including Binance.
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.
Binance’s Ongoing Scrutiny from Multiple Regulatory Bodies
Binance.US platform has recently made a significant decision to transition into a “crypto-only exchange” by delisting all USD trading pairs from its platform by June 13. This move indicates a strategic shift in focus towards catering exclusively to cryptocurrency trading activities.
The company has also cancelled its derivatives license with the Australian Securities and Investments Commission (ASIC) and exited the Canadian market, citing unfavorable regulatory environments as the reason behind these moves.
Featured image from UnSplash, Chart From TradingView.com