It's been a rough week for cryptocurrency exchange Binance. On June 9, it was reported that the Nigerian securities regulator had deemed the exchange illegal, days after Binance was sued by the SEC.
“Binance Nigeria Limited is hereby instructed to immediately cease any form of solicitation of Nigerian investors,” the Nigerian Securities and Exchange Commission (SEC) said in a statement seen by Bloomberg. The regulator also noted that Binance is neither registered nor regulated in the country , making its operations illegal. "Any member of the investing public who deals with this entity does so at their own risk," the committee said. The setback comes days after Binance was sued by US authorities. The SEC filed 13 charges against Binance on June 5, including allegations of an unregistered offering and sale of securities, failure to register as an exchange or broker, and commingling funds. The company said it provided all the information requested by the regulator and looked forward to "defending itself in court".
Binance is a popular cryptocurrency exchange in Nigeria. It is one of the most famous crypto centers in the region and the most popular country in Africa. A study by Chainalysis reveals that the MENA region leads the way in global cryptocurrency adoption, with users acquiring ring $566 billion in cryptocurrencies between July 2021 and June 2022, an increase of 48% over the previous year .
The ban follows recent regulatory developments within the local crypto ecosystem. On May 28, former President Muhammadu Buhari signed the Finance Act imposing a 10% tax on gains from digital assets. Newly elected Nigerian President Bola Tinubu recently released a man ifesto proposing changes to the Nigeria Securities and Exchange Commission's regulations on digital assets to make them more business-friendly. The Central Bank of Nigeria does not recognize cryptocurrencies as legal tender, and commercial banks are prohibited from dealing in cryptocurrencies in the country from February ary 2021.
