Binance suspended in Nigeria!
Legal actions against crypto firm Binance have become one of the significant events in the crypto news this week. The news has caused a wave of consequences that could significantly impact the company’s performance.
Binance, suspended by the financial market regulator
Binance no longer has the right to conduct its crypto activities in Nigeria. The state, one of the most engaged on the continent in terms of crypto, announced its decision on Friday, June 9. The information comes from the Securities and Exchange Commission of Nigeria (SEC Nigeria), the country’s financial market regulator.
According to the public organization, Binance’s Nigerian branch is not in compliance with the law. This irregularity thus deprives it of the right to provide its exchange services and sell securities to the public.
“Binance Nigeria Limited is neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal,” said SEC Nigeria in the notice. This argument is paradoxical, especially since platform registration is not an officially mandatory requirement in the country.
The procedure is still experimental there, and its operationalization is entirely dependent on an agreement with the Nigerian Central Bank. Therefore, one can estimate that the measure is particularly severe against Binance, especially considering that authorities have so far considered crypto assets as securities without explicitly banning them.
This is the first time such a provision has been taken against a crypto company in Nigeria. Moreover, it targets one of the largest players in the global crypto industry in terms of market capitalization.
Does this decision have any connection to the recent lawsuits filed against Binance by the SEC? The notice does not formally indicate it. However, the circumstances in which it occurs may suggest such a cause-and-effect relationship.
Because BNB, Binance’s native crypto, is now considered a security by the SEC. The question that arises from this development is what will be the fate of Nigerian BNB holders.
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