- Binance has drawn the ire of regulators from Africa’s most populous country.
- Regulators have slammed the exchange’s operations as illegal.
- The same regulators had previously mistaken a domain squatter for the international exchange.
Binance, the world’s largest crypto exchange, has increasingly drawn the ire of regulators around the globe in recent months. Despite the firm’s best efforts, its regulatory troubles show no signs of slowing down.
Following lawsuits from regulators in the United States and increased challenges in Europe, the firm now finds itself in the black books of regulators in Africa’s most populous country, Nigeria.
Nigerian SEC Issues Warning
In a statement released on Friday, July 27, the Nigerian Securities and Exchange Commission warned crypto investors that Binance was not a regulated entity in the country, adding that as such, any operations within the country were “illegal.”
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The regulator also cautioned the leading crypto exchange against soliciting customers from the West African state.
"The Commission shall provide updates on further regulatory actions with respect to the activities of such operators and related platforms, and shall work with other regulators in Nigeria to provide further guidance on this matter," the Nigerian SEC added.
Binance did not immediately return a request for comment at the time of writing.
The SEC’s latest warning follows a potential blunder in June where the Nigerian regulator banned a domain squatter believing it to be affiliated with the international exchange.
Not Binance
In a June 9 circular, the Nigerian SEC disclosed that it had banned Binance Nigeria Limited, a firm it said was offering crypto trading via its website and mobile applications. The move sparked speculation that the regulator banned Binance, the international platform.
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However, it appears the regulator had mistakenly identified the site as belonging to Binance, when in fact, it belonged to a domain squatter, hoping to sell the registered business domain to the international exchange. Contrary to the SEC’s initial claims, aside from a registered business name with Nigeria’s Corporate Affairs Commission, there was never a website or mobile app offering trading in crypto assets under the name Binance Nigeria Limited.
Ahassan Ifzal Mughal, the person responsible for registering the platform, told DailyCoin that Binance Nigeria Limited had no ties with the international exchange and had never solicited Nigerian customers. Binance, the true international exchange, also issued a statement condemning Binance Nigeria Limited as a “scammer entity.”
On the Flipside
- Despite a 2021 central bank ban on banks facilitating cryptocurrency transactions, an estimated 22 million Nigerians use cryptocurrencies per a recent Triple A study.
- The Nigerian SEC’s language suggested a broadside on crypto in general.
Why This Matters
Nigeria is among the largest crypto markets in the world. Binance stands to lose significant business if it is restricted from servicing customers in the country.
Read this to learn more about Binance’s German exit:
Binance Blames Changing Regulation for German License Failure
A recent revelation from Coinbase CEO Brian Armstrong raises questions about the future of crypto in the U.S. Find out more:
Coinbase’s SEC Revelation: U.S. Crypto’s Future in Question?
