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HomeCompany NewsWorld’s largest cryptocurrency exchange, Binance declares Nigeria's unit a 'scammer entity'

World’s largest cryptocurrency exchange, Binance declares Nigeria’s unit a ‘scammer entity’

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…Binance issues a cease-and-desist order to Binance Nigeria Limited’

Binance has issued a cease-and-desist order to “Binance Nigeria Limited”, Binance CEO Changpeng Zhao said in a tweet on Sunday, calling the Nigerian company a “scammer entity”.

Earlier this month, Nigeria’s markets regulator ordered Binance to halt its operations in the country, saying the local unit “Binance Nigeria Limited” that courted Nigerian investors through a website was not registered or regulated, making it illegal.

Binance, the world’s biggest cryptocurrency exchange, has faced a string of setbacks recently, including announcing plans to leave the Netherlands, Cyprus, Canada, and Australia and being charged by the U.S. Securities and Exchange Commission (SEC).

The SEC sued Binance and Zhao earlier this month, alleging that the company artificially inflated its trading volumes, diverted customer funds, and misled investors about its market surveillance controls. Binance disputes the SEC charges.

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In a statement last week, Nigeria’s SEC directed Binance Nigeria Limited to halt its operations in the country, saying the local unit that courted Nigerian investors through a website was illegal.

“The attention of the Securities and Exchange Commission (the Commission) has been drawn to the website operated by Binance Nigeria Limited, soliciting the Nigerian public to trade crypto assets on its various web and mobile-enabled platforms.

“Binance Nigeria Limited is neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk.

“As the regulator with the statutory mandate of investor protection, the Commission urges Nigerians to be wary of investing in crypto-assets, and crypto-asset-related financial products and services if the service provider/its platform is not registered or regulated by the Commission. Nigerian investors are hereby warned that investing in crypto-assets is extremely risky and may result in total loss of their investment.

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