While Binance is occupied with a protracted legal dispute in the United States, its purported troubles in another region of the world appear harsh on the company.
The Nigerian SEC recently deemed Binance Nigeria Limited to be illegal and forbade it from conducting any business in African countries. A local government circular claims that Binance Nigeria Limited is unregulated and that there is no legal protection for investments made on the site.
The news reached Binance just days after Binance.US was sued by American authorities on allegations that it had misrepresented trading controls and operated as an unlicensed broker-dealer, exchange, clearing agency, and clearing house. Or rather, if Binance had actually been involved, it would have been horrible news for the company.
According to a representative of the real exchange, the company was unaware of the fraudulent Binance Nigeria Limited.
“The entity mentioned in the circular is not affiliated with us. We are therefore seeking clarity from the Nigerian SEC and remain committed to working with them cooperatively on the next steps.” Stated, the representative.
Cease And Desist Order Against Binance Nigeria Limited
CZ, the CEO of Binance, said in a statement that the international exchange has since sent a cease-and-desist order to the organization using Binance’s name.
One of the African nations with the greatest interest in cryptocurrencies is Nigeria, which even went so far as to develop a CBDC that can be used to settle online transactions. The Nigerian government has been seeking ways to strengthen its economy within a financial environment that is rife with problems like a lack of cash, a labor shortage, and other issues. One of the ways is through the use of blockchain technology.
Unfortunately, the highly crypto-curious country is a top target for criminals looking to profit from the interest increase. Thankfully, it appears that local law enforcement and Binance’s attention to detail have temporarily blocked their efforts.
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