Binance, a leading cryptocurrency exchange, has distanced itself from Binance Nigeria Limited, clarifying that the recent ban imposed by the Nigerian Securities Exchange Commission (SEC) on the Nigerian firm does not affect its operations.
A report by Mariblock, an online platform, revealed that the SEC circular targeted an inactive entity called Binance Nigeria Limited, which has been unaffiliated with Binance.com since 2019.
The SEC had cautioned against Binance Nigeria Limited’s solicitation of Nigerians to trade crypto assets on its platforms.
However, a Binance spokesperson emphasized that the mentioned entity in the circular has no connection to Binance, and they are seeking clarity from the Nigerian SEC while expressing their commitment to cooperate with them.
The spokesperson reassured users that their assets on Binance are safe, accessible, and secure, with user satisfaction being the company’s primary focus.
Binance Nigeria Limited was registered for potential arbitrage purposes, assuming that Binance might establish operations in Nigeria. However, as clarified, this did not occur, and the entity remains inactive.
Meanwhile, Binance continues to face challenges in the United States, as its American affiliate announced the suspension of Dollar deposits.
Binance US stated via a tweet that its banking partners were preparing to halt Dollar withdrawal channels, following a request from the US Securities and Exchange Commission (SEC) to freeze its assets. Customers were given until Tuesday to withdraw their funds.
In addition, the trading platform Robinhood Markets revealed that it would delist certain crypto tokens, following increased regulatory scrutiny by the US securities regulator.
These recent developments raise concerns about the future of the cryptocurrency industry, which has encountered various challenges in the past, such as the FTX collapse, a US banking crisis, and decreased funding for crypto startups
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