A statement on Nigeria’s SEC website stresses that since Binance and “other similar platforms” do not have a license, it is illegal for cryptocurrency exchanges to operate in the country. Any investor investing in cryptocurrencies through Binance or other platforms does so at their own risk, as the regulator cannot ensure that the user’s funds are protected.
“As a regulator with authority to protect investors, the SEC warns citizens that investing in cryptoassets involves a high level of risk and can result in a total loss of investment. Therefore, the Commission urges investors to exercise caution when investing in cryptoassets and other products offered or managed by entities not registered or regulated by the Commission,” the regulator said in a statement.
Also, Nigeria’s SEC is calling on Binance and other crypto platforms to “stop luring” the country’s citizens into various investment schemes.
Recall that in June, the management of global platform Binance said that Binance Nigeria is not and has never been affiliated with the exchange.