{"id":24573,"date":"2023-06-19T11:57:15","date_gmt":"2023-06-19T15:57:15","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/binance-takes-legal-action-against-fraudulent-nigerian-entity-whats-going-on\/"},"modified":"2023-06-19T11:57:17","modified_gmt":"2023-06-19T15:57:17","slug":"binance-takes-legal-action-against-fraudulent-nigerian-entity-whats-going-on","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=24573","title":{"rendered":"Binance Takes Legal Action Against Fraudulent Nigerian Entity \u2013 What’s Going On?"},"content":{"rendered":"
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Crypto giant Binance has issued a cease and desist notice against Binance Nigeria Limited, a \u201cscam entity.\u201d purporting to be associated with Binance.<\/p>\n

On June 9, the Nigerian Securities and Exchange Commission (SEC) ordered Binance to halt its operations of the local entity in the African country.\u00a0<\/p>\n

The SEC said in its circular that the exchange was courting local investors through an illegal website.\u00a0<\/p>\n

The financial regulator informed Binance that their local entity, \u201cBinance Nigeria Limited,\u201d was not registered or regulated.\u00a0<\/p>\n

However, it now seems that the entity was not officially associated with Binance.<\/p>\n

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Binance Assures Panicked Customers\u00a0<\/h2>\n

Following the announcement of the cease and desist order against Binance Nigeria Limited, Binance CEO CZ received a flood of messages from concerned customers in Africa on his Twitter feed.<\/p>\n

They asked Binance to clarify if this will affect trading on Binance\u2019s app in Nigeria.\u00a0<\/p>\n

However, Binance reassured customers that this does not change anything and their assets are safe on the app.\u00a0<\/p>\n

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Bloomberg reported<\/u> last month that Nigeria’s SEC has plans to allow licensed crypto exchanges to list crypto tokens backed by real assets.\u00a0<\/p>\n

Nigeria has remained a hub for crypto enthusiasts despite the central bank\u2019s crackdown on the industry over the years.\u00a0<\/p>\n

However, the regulators are now mulling over fresh regulations to welcome digital assets.\u00a0<\/p>\n

Binance\u2019s Regulatory Woes Continue\u00a0<\/h2>\n

The Nigerian SEC\u2019s circular against Binance in Nigeria<\/u> came only a few days after the US SEC announced 13 charges against the crypto exchange.<\/p>\n

US SEC\u2019s charges against Binance could decide the future of CZ\u2019s empire.<\/p>\n

The crypto exchange giant is being accused of running an illegal exchange, broker-dealer and clearing agency in the country. The exchange is also being accused of misrepresenting trading controls.<\/p>\n

The lawsuit claims that CZ and Binance used a web of firms to control Binance.US\u2019s funds.\u00a0<\/p>\n

The legal fight between the financial regulator and the world\u2019s largest exchange has already begun.\u00a0<\/p>\n

Binance scored a win last week when a US court allowed an agreement<\/u> between the exchange and the SEC, resulting in revoking the financial regulator\u2019s request to freeze all funds on Binance.US.\u00a0<\/p>\n

As per the agreement reached by the two parties, Binance.US can not allow Binance Holdings officials to have access to private keys for its hardware wallets or root access to Binance.US’s Amazon Web Services tools.\u00a0<\/p>\n

Gurbir Grewal, director of the SEC’s enforcement division said in a statement that Binance and CZ controlled the US customers\u2019 assets and diverted and commingled these funds as they pleased.<\/p>\n

These prohibitions are necessary to protect customers\u2019 assets, he added.\u00a0<\/p>\n

Binance is not alone battling the US SEC and its chair Gary Gensler at the moment, Coinbase, the largest US-based crypto exchange, is also engaged in an existential battle with the regulatory agency.<\/p>\n

It wouldn\u2019t be far-fetched to say that the future of the crypto industry in the United States hangs in balance on these two US SEC lawsuits.\u00a0<\/p>\n<\/p><\/div>\n