Top cryptocurrency exchange Binance has distanced itself from Binance Nigeria Limited, claiming that it is unaffected by the Nigerian company’s operations being outlawed by that nation’s Securities Exchange Commission (SEC).
The organization mentioned in the SEC circular, Binance Nigeria Limited, has reportedly been inactive since 2019 and is unrelated to the company that runs Binance.com, according to a report from the web platform Mariblock.
The SEC had previously issued a warning about Binance Nigeria Limited’s solicitation of Nigerians “to trade crypto assets on its various web and mobile-enabled platforms.”
According to a spokeswoman for Binance, “We are aware of the circular. Binance Nigeria Limited, the company named in the circular, is not connected to us. As a result, we are requesting clarification from the Nigerian SEC and are still committed to cooperating with them as we move forward.
Most essential, we want to let users know that their assets are secure, accessible, and protected on Binance. Delivering for our users will always be our top focus.
“Binance Nigeria Limited is not connected to the business. Only after we speculated that Binance would want to establish business in Nigeria was it registered for arbitrage purposes. However, it did not occur, and as you can see, Binance Nigeria Limited is no longer in operation.
The SEC stated that it would collaborate with Nigerian regulators to provide more guidelines and will provide updates on regulatory proceedings against Binance Nigeria Limited and comparable platforms.
Despite this development, Binance is still having issues in the US as its American subsidiary recently announced that it was stopping Dollar deposits.
Binance.In response to the US Securities and Exchange Commission (SEC) asking a court to freeze its assets, US, Binance’s American partner, stated in a tweet on Thursday that its banking partners were getting ready to halt Dollar withdrawal routes as early as June 13.
The deadline for customers to withdraw their money was Tuesday.
Additionally, when the US securities regulator intensified its attack on the cryptocurrency sector, trading platform Robinhood Markets announced it was delisting some cryptocurrency tokens.
These changes are prompting concerns about the industry’s future, which has previously seen numerous problems, including the demise of FTX, a US financial crisis, and a slowdown in funding for cryptocurrency start-ups.