The Nigerian Securities and Exchange Commission (SEC) has once again emphasized that Binance’s operations within the country are illegal. In a recent statement, the regulator specifically pointed out Binance’s official website and stated that the activities of the platform are not registered or regulated by the Commission. This reaffirmation of the warning comes amid the SEC’s ongoing concerns about Binance’s presence in Nigeria. As of now, Binance has not responded to requests for comment from CryptoSlate.
Despite the SEC’s warning, Binance continues to establish itself as a prominent cryptocurrency platform in Nigeria. The exchange has emerged as a market leader following FTX’s downfall, with its USDT/Naira trading pair approaching a trading volume of $500,000 in the past 24 hours, according to platform data. This impressive performance demonstrates the significant demand for Binance’s services in the African country.
Regulatory Approval in Dubai Amidst European Setbacks
While Binance has been facing regulatory hurdles in Europe resulting in its exit from several markets, it recently made progress in Dubai. The exchange received an Operational Minimum Viable Product (MVP) license, making it the first digital asset exchange to obtain such approval in the region. This milestone allows Binance to operate and offer its services within the area. It appears that Binance is redirecting its focus towards complying with upcoming regulations in Europe to regain access to those markets.
Back in June, the Nigerian SEC declared the operations of Binance Nigeria Limited illegal and cautioned the public against using the platform. Binance clarified that the mentioned entity was unrelated to Binance.com and that they had issued a cease and desist notice to the unauthorized “scam” entity. However, the recent statement from the Nigerian SEC suggests that it is maintaining its warning against Binance, adding further complexity to the situation.
As Binance navigates the challenging regulatory landscape, its continued growth and success in Nigeria demonstrate its ability to adapt and thrive in different markets. While the Nigerian SEC’s warning adds pressure, Binance’s actions in Dubai show its determination to secure regulatory approval in various regions. As the crypto industry evolves, Binance must prioritize compliance and work closely with regulatory bodies to ensure its long-term sustainability across markets worldwide.
The Nigerian SEC’s reiteration of the illegality of Binance’s operations in the country raises concerns for the exchange. Binance’s response and actions moving forward will determine its ability to overcome regulatory challenges and maintain its position as a leader in the cryptocurrency industry.