The Nigerian Securities and Exchange Commission (SEC) has once again warned that Binance’s operations within the country are illegal, as stated in their recent notice issued on July 28. In this notice, the regulator specifically addresses Binance’s official website, emphasizing that it is not registered or regulated by the Commission and therefore operating illegally in Nigeria. While Binance has yet to respond to these allegations, it is clear that the SEC remains firm in its stance against the crypto platform.
Despite the Nigerian SEC’s warning, Binance continues to maintain its status as a leading cryptocurrency platform in the African country. The exchange solidified its market position after the collapse of FTX, with its USDT/Naira trading pair recording nearly $500,000 in trading volume within the last 24 hours, according to platform data. This demonstrates Binance’s strong presence and popularity among Nigerian crypto investors.
While Binance has faced multiple setbacks in Europe, it recently obtained regulatory approval in Dubai, opening up new opportunities in the region. The exchange proudly announced that it was granted an Operational Minimum Viable Product (MVP) license, making it the first digital asset exchange to receive such a license in the area. This license enables Binance to engage in trading activities within the region and marks a significant milestone for the platform.
In light of regulatory challenges, Binance has made the decision to exit several European markets, including the Netherlands, Cyprus, Germany, and the U.K. This move came after failing to secure the necessary regulatory approvals to operate in these countries. However, Binance’s spokesperson clarified that the firm is actively working towards complying with the forthcoming Markets in Crypto Assets (MiCA) regulations in order to resume its services and operations in Europe.
This recent warning from the Nigerian SEC is not the first time that Binance has faced regulatory hurdles in Nigeria. In June, the SEC declared the operations of Binance Nigeria Limited as illegal and cautioned the public against using the platform. Binance responded by distinguishing Binance Nigeria Limited from Binance.com, emphasizing that they were not affiliated with the unregulated entity mentioned by the Nigerian financial watchdog. Despite Binance’s efforts, the new statement from the SEC suggests that the regulator is reaffirming its warning against Binance.
Binance is currently grappling with regulatory challenges in Nigeria as the Nigerian SEC declares its operations within the country illegal. Despite this setback, Binance remains a prominent player in the African market and has recently secured regulatory approval in Dubai. The platform’s decision to withdraw from various European markets highlights its commitment to compliance with future regulations. As Binance navigates these regulatory obstacles, its actions and responses will shape its future dealings in Nigeria and beyond.
