BREAKING: Binance Declared illegal By Nigerian SEC, Accused Of Wrongful Operation

Published by

Qadir AK

June 10, 2023

Binance, the largest global cryptocurrency exchange, and its US counterpart are currently under investigation in the United States for a range of alleged crimes. These accusations include money laundering and tax offenses. Furthermore, Binance is now dealing with additional challenges as it faces a lawsuit from the US Securities and Exchange Commission (SEC).

Adding to their troubles, Nigeria’s Securities and Exchange Commission recently deemed Binance’s activities in the country as “illegal.”

What’s going on? Read on for all the details.

Binance Declared Illegal by Nigerian SEC

Nigeria’s Securities and Exchange Commission (SEC) has issued a declaration stating that Binance Nigeria Limited, a subsidiary of Binance, is operating unlawfully in the country.

The regulator has specifically instructed Binance to cease all its activities within Nigeria. The SEC found that Binance’s local unit had attracted Nigerian investors through its website, which was deemed to be operating in violation of the law.

SEC Issues Warning

The Nigerian SEC issued a statement clarifying that Binance is neither registered nor regulated by the agency, rendering its operations in Nigeria “illegal.” The SEC has ordered Binance to stop Nigerians from investing on the platform and has warned of regulatory action against crypto exchanges. The SEC’s cautionary notice to the public advises against investing in crypto assets and related financial products or services due to the associated risks.

Binance In Trouble?

The US Securities and Exchange Commission (SEC) has taken significant action against Binance, its US counterpart Binance.US, and Changpeng “CZ” Zhao, the company’s CEO. On Monday, the SEC filed 13 charges against them, signaling potential trouble ahead for Binance.

TrueUSD and Prime Trust Impacted

In response to the SEC’s actions, the company responsible for the TrueUSD (TUSD) stablecoin announced a temporary suspension of minting through the crypto custodian Prime Trust. This development has wider implications for Binance, as TUSD and Prime Trust are closely associated with the exchange.

The hole keeps getting deeper for Binance. Will they ever be able to recover?

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.