Changpeng Zhao (CZ) has recently taken to Twitter to advise crypto users while labeling the entity dubbed “Binance Nigeria Limited” a scam. According to him, Binance is not affiliated with the entity.
The top-ranked digital assets exchange by daily trading volume and the largest blockchain ecosystem Binance, has been the latest target for the United States Securities and Exchange Commission (SEC) alongside Coinbase in the agency’s expedition to achieve crypto regulation by enforcement.
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In the wake of the 13-charge lawsuit filed against Binance by the Gary Gensler-led SEC on June 5, the attention of the Nigeria Securities and Exchange Commission was drawn to the website operated by an entity dubbed “Binance Nigeria Limited.” The platform which offers crypto trading services has been soliciting the Nigerian public to trade crypto assets on its various web and mobile applications.
Given that “Binance Nigeria Limited” is unregistered with SEC Nigeria and hence, its services unregulated by the Commission, SEC Nigeria declared the operations of “Binance Nigeria Limited” illegal and warned Nigerians to desist from patronizing the platform.
Per the circular issued on June 9, Binance Nigeria Limited was directed to immediately stop soliciting Nigerian investors in any form whatsoever by SEC Nigeria. The Nigerian securities commission added that further regulatory actions would be taken against “Binance Nigeria Limited.” Consequently, this development fueled more FUD against the Binance crypto exchange which has prompted Changpeng Zhao to address the issue.
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Binance CEO Responds
Reacting to the matter, the widely followed CZ implied that Binance has no relationship with the entity known as “Binance Nigeria Limited,” urging users to not believe everything they see in the news. Accordingly, the exchange founder noted that a cease and desist notice has been sent to the said entity which he called a scam.
Binance have issued cease & desist notice to the scammer entity "Binance Nigeria Limited".
Don't believe everything you read in the news. 🤷♂️
— CZ 🔶 Binance (@cz_binance) June 18, 2023
On the other hand, Binance is pushing to obtain clarity from SEC Nigeria. “The entity mentioned in the circular is not affiliated with us. We are therefore seeking clarity from the Nigerian SEC and remain committed to working with them cooperatively on the next steps,” a Binance spokesperson said.
As recently published, Binance CEO has expressed his delight and relief as the court resolved a protracted dispute in its lawsuit with United States SEC.
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