• Nigeria’s securities regulator has declared Binance’s operations illegal, citing lack of registration and regulation in the country.
• The ban follows a lawsuit from the United States Securities and Exchange Commission (SEC) against Binance.
• Nigeria recently introduced a 10% tax on digital asset gains and is looking to revise its SEC regulations to make them more business-friendly.
Binance Halts Operations in Nigeria
According to Nigeria’s securities regulator, crypto exchange Binance is neither registered nor regulated in the country, making its operations illegal.
SEC Charges Against Binance
The setback comes just days after Binance was sued by U.S. authorities. On June 5, the SEC filed a lawsuit with 13 charges against Binance, including accusations of unregistered offers and sales of securities, failure to register as an exchange or broker, and commingling of funds.
Crypto Adoption In Africa
Binance is a popular crypto exchange in Nigeria. A study by Chainalysis shows that the Middle East and North Africa region is leading crypto adoption worldwide, with users receiving $566 billion in cryptocurrencies between July 2021 and June 2022.
Nigeria’s New Tax Law
On May 28th, former President Muhammadu Buhari signed the Finance Act into law, introducing a 10% tax on gains from digital assets.
Revision Of Nigerian SEC Regulations
The newly elected Nigerian president, Bola Tinubu has recently released a manifesto suggesting a revision of the Nigerian SEC’s regulations on digital assets to make them more business-friendly.