• The Nigerian Securities and Exchange Commission has ordered Binance, the world’s largest cryptocurrency exchange, to cease operations in Nigeria calling it illegal.
• Financial institutions in Nigeria are no longer permitted to conduct crypto transactions due to the significant dangers associated with it.
• Binance was hit with 13 allegations by the US Securities and Exchange Commission on Monday.
Binance Ordered To Halt Illegal Operations In Nigeria
The Nigerian Securities and Exchange Commission (SEC) has called out Binance, the world’s largest cryptocurrency exchange for being “illegal” to operate in the country. This announcement comes after a complaint filed by the US Securities and Exchange Commission against Binance and several affiliated companies. The SEC has ordered Binance to prevent Nigerians from investing on its platform as a result of their lack of registration or control over them. Additionally, financial institutions in Nigeria are no longer permitted to conduct crypto transactions.
Finance Act 2023 Levies Tax On Crypto Assets
The action occurred after Nigeria’s Finance Act 2023 was passed which levies a 10% capital gains tax on cryptocurrencies and other digital assets. As a result, many companies were afraid to do business with Binance U.S., thus throwing the entire cryptocurrency industry into chaos.
US SEC Allegations Against Binance
Binace, Binace.US, and Changpeng Zhao (CZ) were hit with 13 allegations by the US SEC on Monday which adds more complications into an already complex situation for them in Nigeria.
SEC Warns Nigerians To Avoid Investing In Cryptocurrencies
Due to the significant dangers associated with cryptocurrencies such as fraudulence, manipulation etc., The Nigerian SEC has warned Nigerians not ot invest in any crypto assets or services related thereto before they can be registered under its laws .
It is clear that there are several hurdles that must be overcome before cryptocurrencies become fully integrated into mainstream finance across different countries including Nigeria where authorities have classified it as illegal until further notice due to its potential risks involved with its use.