Nigeria’s Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians, advising against investing or trading on Binance, the world’s largest cryptocurrency exchange by trading volume. The Commission, in line with its mission to protect investors, has labeled trading in crypto assets as a high-risk endeavor, potentially leading to complete loss of investments.

The Commission’s stance on Binance operations is clear: The circular released on July 28 highlights that Binance, along with any other platform through which the company seeks investors, has neither been registered nor regulated by the Commission, rendering its operations in Nigeria illegal.

Interestingly, a previous circular released by the regulator in June already cautioned locals about trading on the website operated by “Binance Nigeria Limited.” Additionally, the Commission had directed the company to cease soliciting funds from investors in any manner.

Curiously, Binance has clarified that it does not own or run Binance Nigeria Limited. In a tweet from CEO Changpeng Zhao, he expressly stated that the exchange has no affiliation with the said entity and issued a cease and desist notice to the “scammer entity.” This clarification emerged amidst allegations that Binance Nigeria Limited was actually an extension of the global exchange.

Nevertheless, the situation remains perplexing, as Binance Nigeria Limited continues to represent itself as a subsidiary of the exchange on its website, incorporating the exchange’s logo and other trademarks.

While confusion surrounds the identity of Binance Nigeria Limited, the Commission’s stance on digital assets appears unchanged. Nigeria’s SEC has consistently deemed cryptocurrencies as highly risky investments and advised Nigerian investors to steer clear of them.

However, the Commission itself has yet to provide a comprehensive framework for the operation of crypto exchanges in the country. Although it has made promises to collaborate with other regulators to provide further guidance on this matter, no significant updates have been released so far.

Despite the regulatory skepticism toward digital assets, Nigerians appear to be actively involved in the cryptocurrency space. A report by crypto exchange Kucoin reveals that 35% of Nigerian adults are crypto investors, indicating a strong interest in the industry.

As the relationship between crypto exchanges and Nigerian regulatory bodies continues to evolve, it remains crucial for prospective investors to exercise caution and stay informed about regulatory developments. Diligent research and adherence to established financial practices are essential when venturing into the world of crypto assets, particularly in an environment where clarity and oversight are still evolving.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.