Binance, the world’s largest cryptocurrency exchange, has been ordered by Nigeria’s markets regulator to stop its operations in the country. The Securities and Exchange Commission (SEC) said that Binance Nigeria Limited, which solicited Nigerian investors through a website, was illegal and unregistered, making it illegal to continue its operations. Binance has not yet commented on the matter.
Nigeria’s Regulations for Digital Assets
In 2020, Nigeria’s SEC published a set of regulations for digital assets, aiming to find a balance between an outright ban on crypto assets and their unregulated use. This came after Nigeria’s central bank banned banks and financial institutions from dealing in or facilitating transactions in digital currencies. However, Nigeria’s young and tech-savvy population has eagerly adopted cryptocurrencies, using peer-to-peer trading offered by crypto exchanges to avoid the financial sector ban.
Binance.US Halts Dollar Deposits
Binance.US, the US affiliate of Binance, has halted dollar deposits and given customers until Tuesday to withdraw their dollar funds, after the US securities regulator asked a court to freeze its assets. Binance.US’s banking partners are also preparing to stop dollar withdrawal channels as early as June 13. The SEC has sued Binance, its CEO and founder Changpeng Zhao, as well as Binance.US’s operator, in a dramatic escalation of a crackdown on the industry by US regulators. The SEC also sued major US exchange Coinbase a day later. Binance.US has called the SEC’s civil charges “unjustified” and said it would “vigorously defend” itself.
Nigeria’s SEC has ordered Binance to halt its operations in the country because it was unregistered and illegal. Nigeria has been trying to find a balance between an outright ban on crypto assets and their unregulated use after its central bank banned banks and financial institutions from dealing in or facilitating transactions in digital currencies. Meanwhile, Binance.US has halted dollar deposits and given customers until Tuesday to withdraw their dollar funds, after the US securities regulator asked a court to freeze its assets.
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