"Binance is impressed, how long will this matter last?"
Binance's operations in Nigeria were declared illegal by the country's Securities and Exchange Commission (SEC) as the giant cryptocurrency exchange has recently faced various challenges.
Explained in more detail, the Nigerian SEC, which wants to stop the operation of the crypto exchange, has declared Binance's subsidiary, Binance Nigeria Limited, as 'illegal'.
This is because the Nigerian SEC claims that Binance is not registered or regulated by the agency, therefore its regulator ordered the following crypto exchanges to stop Nigerians from investing on the Binance platform.
Although Nigeria bans lenders from processing crypto transactions, it remains among the top countries that account for the largest volume of crypto transactions through peer-to-peer trading platforms outside of the United States (US).
Even so, the SEC has warned Nigerians who invest in financial products or services in relation to digital assets as it has a relatively high risk that can result in losses for investors.
The move comes shortly after Nigeria passed the Finance Act 2023 which imposes a 10% capital gains tax on cryptocurrencies.
On Monday last week, the entire crypto market was slightly shaken when the US SEC filed 13 charges against Binance, Binance US and its Chief Executive Officer (CEO) Changpeng Zhao, better known as CZ.
The company behind the TrueUSD (TUSD) stablecoin announced that minting through a crypto custodian* called Prime Trust will be temporarily discontinued, where TUSD and Prime Trust have been used by Binance.
*protects digital assets by ensuring investors' private keys are maintained securely
