Binance takes action against a fraudulent company in Nigeria while facing global regulatory pressures.
Key Points:
- Binance issued a cease and desist notice to “Binance Nigeria Limited,” a fraudulent company soliciting Nigerian investors.
- The Nigerian market regulator had warned that the entity was operating illegally as it was not registered or regulated.
- The real Binance clarified that it had no affiliation with the fraudulent company and sought clarity from the Nigerian SEC.
- Binance is facing regulatory pressures globally, with legal proceedings initiated by the SEC in the United States and investigations by French authorities for alleged money laundering.
Crypto exchange Binance has taken action against a fraudulent company in Nigeria that had been soliciting Nigerian investors. Binance issued a cease and desist notice to “Binance Nigeria Limited,” denouncing it as a scammer entity. The move came after Nigeria’s market regulator issued a circular warning that Binance Nigeria Limited was operating illegally as it was neither registered nor regulated by the Commission.
Binance’s CEO, Changpeng Zhao, confirmed the cease and desist notice on Twitter, urging people not to believe everything they read in the news. In response to the circular, a spokesperson for Binance stated that the entity mentioned was not affiliated with them and they were seeking clarity from the Nigerian SEC.
Interestingly, the individual responsible for registering Binance Nigeria Limited revealed that they had hoped to sell the company name to Binance. However, it is important to note that the real Binance has no affiliation with the fraudulent company.
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
The Real Binance and Regulatory Pressures
This incident comes at a time when the real Binance is facing increasing regulatory pressures globally. The exchange has recently scaled back its operations in several major markets, including the Netherlands, Cyprus, and Canada. Additionally, bank transfers to and from Binance have been halted in Australia, highlighting the challenges of operating a crypto exchange within a regulated global environment.
In the United States, Binance and its CEO, Changpeng Zhao, are facing legal proceedings initiated by the Securities and Exchange Commission (SEC). The SEC has accused Binance of securities violations, including artificially inflating trading volumes, misappropriating customer funds, and providing misleading information about its market surveillance controls.
Binance has vehemently denied these allegations and has filed motions opposing the lawsuit. However, the regulatory woes for Binance continue to mount. French authorities have also launched an investigation into the exchange for alleged “aggravated money laundering.”
Despite these challenges, Binance remains committed to working with regulators and seeking clarity on the next steps. The exchange acknowledges the need for cooperation in the ever-evolving regulatory landscape.
End Note
Binance has taken swift action against a fraudulent company in Nigeria, issuing a cease and desist notice to protect investors. While facing regulatory pressures globally, the real Binance remains dedicated to engaging with regulators and ensuring compliance. As the crypto industry navigates the regulatory landscape, it is essential for individuals and exchanges alike to stay informed and adapt to the evolving environment.
