Binance, a leading cryptocurrency exchange, has distanced itself from Binance Nigeria Limited, claiming that the Nigerian firm’s operations are not affected by the country’s Securities and Exchange Commission (SEC).
According to a Mariblock report, the entity addressed in the SEC circular, Binance Nigeria Limited, has been inactive since 2019 and is unaffiliated with the entity operating Binance.com.
The Securities and Exchange Commission (SEC) had warned that Binance Nigeria Limited was soliciting Nigerians “to trade crypto assets on its various web and mobile-enabled platforms.”
“We are aware of the circular,” a Binance spokesperson told the publication. However, we are not affiliated with the entity mentioned in the circular (Binance Nigeria Limited). As a result, we are seeking clarification from the Nigerian SEC and remain committed to cooperating with them on the next steps.
“Most importantly, we want to remind users that their assets on Binance are safe, accessible and secure. Our greatest priority will always be to deliver for our users.
“The company (Binance Nigeria Limited) is not affiliated with Binance. It was only registered for arbitrage reasons when we thought Binance might want to set up operations in Nigeria. But that did not happen, and as you can see, it (Binance Nigeria Limited) is inactive.”
In a hazy statement, the SEC stated that it would provide updates on regulatory actions taken against Binance Nigeria Limited and similar platforms, as well as collaborate with Nigerian regulators to provide additional guidance.
Regardless of this development, Binance continues to face difficulties in the United States, as its American affiliate announced a halt to Dollar deposits.
Binance’s American partner, US, said in a tweet on Thursday that its banking partners were preparing to shut down Dollar withdrawal channels as early as June 13 after the US Securities and Exchange Commission (SEC) requested that its assets be frozen.
Customers were given until Tuesday to withdraw their money.
In addition, trading platform Robinhood Markets announced the delisting of some crypto tokens after the US Securities and Exchange Commission tightened its grip on the crypto sector.
These developments are raising concerns about the industry’s future, which has faced numerous challenges in the past, including the collapse of FTX, a banking crisis in the United States, and a slowdown in funding for crypto start-ups.