The Security and Exchange Commission (SEC) of Nigeria has once again cautioned Nigerians against engaging in investments with the popular cryptocurrency exchange, Binance. In a recent statement released on Friday night, the SEC reiterated its earlier circular dated 9th June 2023, highlighting concerns over Binance’s website soliciting Nigerian citizens to trade crypto assets.

According to the SEC’s statement, Binance’s activities remain unregistered and unregulated in Nigeria, rendering them illegal within the country’s financial ecosystem. The commission emphasized that any member of the investing public involved in dealings with Binance or any platform used for solicitation is doing so entirely at their own risk.

The SEC further emphasized the high-risk nature of investing in crypto-assets, warning investors about the potential for significant losses. As the regulatory body mandated to protect investors, the commission urged the public to exercise caution when dealing with entities that lack proper registration or regulation by the SEC.

In light of the ongoing concerns, the SEC also directed all platform providers engaged in soliciting Nigerian investors to cease such activities immediately. The commission vowed to provide regular updates on additional regulatory actions related to Binance’s activities and similar operators. Additionally, the SEC announced its collaboration with other regulatory bodies in Nigeria to offer further guidance on this matter.

This latest warning from the SEC follows a previous statement issued last month, where the commission stressed that Binance Nigeria Limited, an alleged subsidiary of the well-known global cryptocurrency exchange, Binance, is operating in contravention of Nigerian law. The SEC advised Nigerians to exercise caution when dealing with unregistered and unregulated platforms such as Binance Nigeria.

It is essential to note that Binance has faced regulatory challenges in various jurisdictions. In the United States, Binance.US, the U.S. subsidiary of the global exchange, was sued by the U.S. SEC, accused of operating an illegal securities exchange.

As the cryptocurrency market continues to attract increased attention from regulators worldwide, Nigeria’s SEC is keen on safeguarding its citizens from potential risks associated with unregulated cryptocurrency exchanges. The commission’s repeated warnings underscore the need for investors to be diligent and well-informed while navigating the cryptocurrency landscape.

CryptoTimes.Africa will continue to monitor developments in this regulatory space and keep readers updated on any further actions taken by the Nigerian SEC regarding Binance and other related platforms.