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<p><strong>Nigeria declared that Binance operates illegally in the country.</strong></p>
<h2 style="text-align: center;" id="ordered-to-halt-operations-immediately">Ordered to Halt Operations Immediately</h2>
<p>Nigeria&#8217;s securities regulator has <a href="https://www.reuters.com/article/idUSL8N38206U" target="_blank" rel="noopener">ordered</a> Binance, the world&#8217;s largest cryptocurrency exchange, to halt its operations in the country. The regulator states that Binance is not registered or regulated in Nigeria, which makes its activities illegal.</p>
<h2 style="text-align: center;" id="challenges-for-binance">Challenges for Binance</h2>
<p>Binance has faced a difficult week. Shortly after being sued by the U.S. Securities and Exchange Commission, Nigeria&#8217;s securities authority declared the exchange illegal on June 9. Bloomberg reported that Nigeria&#8217;s Securities and Exchange Commission (SEC) issued a statement directing Binance Nigeria Limited to immediately stop soliciting Nigerian investors.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Nigeria ordered the suspension of <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw">#Binance</a> !<br />
The Securities and Exchange Commission of Nigeria has ordered <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw">#Binance</a> to cease operations in the country, stating, <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw">#Binance</a> Nigeria Limited is not registered and its operations in Nigeria are illegal.</p>
<p>4️⃣ Again <a href="https://twitter.com/cz_binance?ref_src=twsrc%5Etfw">@cz_binance</a> &#8230;.. <a href="https://t.co/ASD6ft1t0t">pic.twitter.com/ASD6ft1t0t</a></p>
<p>— Crypto 🔶️Best_Mood🔶️ (@CryptoBestmood) <a href="https://twitter.com/CryptoBestmood/status/1667524181834047489?ref_src=twsrc%5Etfw">June 10, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="regulatory-concerns">Regulatory Concerns</h2>
<p>The SEC emphasized that Binance&#8217;s operations in Nigeria are unauthorized and carry risks for investors. The commission warned that anyone engaging with Binance does so at their own peril.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Warning!</p>
<p>The federal government has called on Nigerians to refrain from investing their hard earn money in Binance.</p>
<p>Binance Nigeria has been actively promoting cryptocurrency investment across Nigeria.<a href="https://t.co/W8bVhvCUhG">https://t.co/W8bVhvCUhG</a></p>
<p>— Legit.ng | Leading the way (@legitngnews) <a href="https://twitter.com/legitngnews/status/1667471795220365314?ref_src=twsrc%5Etfw">June 10, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="u-s-lawsuit">U.S. Lawsuit</h2>
<p>In addition to the Nigerian regulator&#8217;s actions, Binance <a href="https://walletinvestor.com/magazinadmin/sec-accuses-binance-and-ceo-of-mishandling-funds/" target="_blank" rel="noopener">is also dealing with</a> a lawsuit from the U.S. Securities and Exchange Commission. On June 5, the SEC filed 13 charges against Binance, accusing the exchange of unregistered securities sales, failure to register as an exchange or broker, and improper handling of funds. Binance responded by stating that it had provided all the necessary information to regulators and is prepared to defend itself in court.</p>
<h2 style="text-align: center;" id="binance-8217-s-popularity-in-nigeria">Binance&#8217;s Popularity in Nigeria</h2>
<p>Binance is a well-known cryptocurrency exchange in Nigeria, which is Africa&#8217;s most populous country and a prominent hub for cryptocurrencies in the region. A Chainalysis study revealed that the Middle East and North Africa have seen significant crypto adoption, with users receiving $566 billion in cryptocurrencies between July 2021 and June 2022—a 48% increase from the previous year.</p>
<h2 style="text-align: center;" id="local-regulatory-developments">Local Regulatory Developments</h2>
<p>The Nigerian government has been implementing regulatory measures in the local crypto ecosystem. In May 2023, former President Muhammadu Buhari signed the Finance Act into law, introducing a 10% tax on digital asset gains. The newly elected Nigerian president, Bola Tinubu, has also proposed revising the Nigerian SEC&#8217;s regulations to foster a more business-friendly environment for digital assets.</p>
<h2 style="text-align: center;" id="crypto-landscape-in-nigeria">Crypto Landscape in Nigeria</h2>
<p>Cryptocurrencies are not recognized as legal tender by the Central Bank of Nigeria, and commercial banks have been prohibited from engaging in crypto transactions since February 2021. Despite these restrictions, Nigeria&#8217;s young and tech-savvy population has shown a strong interest in cryptocurrencies. Peer-to-peer trading on crypto exchanges has been used as a workaround to bypass the ban on traditional financial institutions.</p>
<h2 style="text-align: center;" id="conclusion">Conclusion</h2>
<p>Nigeria&#8217;s securities regulator has deemed Binance&#8217;s operations illegal, ordering the exchange to cease its activities in the country. This comes in the wake of a lawsuit filed by the U.S. Securities and Exchange Commission against Binance. Nigeria&#8217;s crypto ecosystem has been subject to regulatory developments, including tax regulations and proposed revisions to make the environment more business-friendly. While cryptocurrencies are not recognized as legal tender by the central bank, Nigeria&#8217;s population continues to embrace crypto assets, utilizing peer-to-peer trading to circumvent the restrictions imposed by financial institutions.</p>

Nigeria Regulator Stops Binance Operations

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