The Nigerian Securities and Exchange Commission (SEC) has once again declared that the operations of Binance, the global cryptocurrency exchange, are illegal in Nigeria. The SEC warned the public against dealing with the entity, emphasizing that anyone engaging with Binance is doing so at their own risk. Binance previously distanced itself from "Binance Nigeria Limited" when the SEC initially declared it illegal in June. The SEC has now clarified that Binance's activities in Nigeria, including its website, are not registered or regulated by the commission, making them illegal. The commission also warned against interacting with other unlicensed exchanges, highlighting the extreme risks associated with investing in crypto-assets.

The SEC's position on cryptocurrency regulations in Nigeria has been evolving. As of September 2020, it considered crypto-assets as a form of security, unless proven otherwise, falling under its regulatory purview. Later, in 2022, the commission stated that entities offering crypto-related services in Nigeria must obtain a Virtual Asset Service Provider (VASP) license. Binance has not acquired this license, according to the latest circular from SEC.

Binance's founder and CEO, Changpeng "CZ" Zhao, has been engaging with regulators in Africa, including meeting with presidents of various countries. However, Binance has faced regulatory challenges, and the recent declaration of its illegality in Nigeria adds to the company's hurdles in the region. Binance has not yet responded to the latest statement from the Nigerian SEC.

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