While Binance is busy fighting a pitched legal battle in the U.S., its alleged woes in another part of the world seem to have been unfounded.
Entity Previously Unknown to Binance
Recently, the Nigerian SEC declared an entity known as Binance Nigeria Limited illegal, forbidding it from doing any business within the African nation. According to a circular published by the local authority, Binance Nigeria Limited is unregulated – and investments made on said platform lack any sort of legal protection.
The news came at the worst time possible for Binance, mere days after the U.S. authorities took Binance.US to court over charges such as operating as an unregistered broker-dealer, exchange, clearing agency, and misrepresenting trading controls. Or rather, it would have been terrible news for Binance if the firm had actually been involved.
In fact, it turns out that Binance was not aware of this company’s existence, according to a spokesman for the real exchange.
“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.”
Cease and Desist
According to a statement published by CZ himself, the global exchange has now sent the entity using Binance’s name a cease-and-desist order.
Binance have issued cease & desist notice to the scammer entity “Binance Nigeria Limited”.
Don’t believe everything you read in the news. 🤷♂️
— CZ 🔶 Binance (@cz_binance) June 18, 2023
Nigeria is one of the countries most interested in cryptocurrencies in the region – even going so far as to create a CBDC that can be used to settle online payments. In a financial climate fraught with cash scarcity, an employment crisis, and other woes, the Nigerian government has been looking for ways to bolster its economy. The use of blockchain technology is one of these.
“The vision of (our) Policy is to create a Blockchain-powered economy that supports secure transactions, data sharing, and value exchange between people, businesses, and Government, thereby enhancing innovation, trust, growth, and prosperity for all. The implementation of the National Blockchain Policy will have a positive effect on both the public and private sectors of the country.”
Unfortunately, the notoriously crypto-curious nation is a prime target for bad actors attempting to cash in on the interest boom.
Thankfully, their efforts seem to have been temporarily thwarted by the vigilance of local authorities and that of Binance itself.
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