Binance, one of the world’s largest cryptocurrency exchanges, has taken a decisive step against a fraudulent Nigerian entity known as Binance Nigeria Limited. The move follows a circular released by the Nigerian Securities and Exchange Commission (SEC) declaring the operations of Binance Nigeria Limited illegal within the country.
CEO Changpeng Zhao, commonly known as CZ, personally announced the issuance of the cease and desist notice via his Twitter account on Sunday, June 18. This action comes in response to the SEC’s circular released on June 9, which specifically highlighted the illegal status of Nigerian exchange.
A spokesman for the exchange responded to the matter and made it clear that the organization named in the SEC’s circular is unrelated to the actual exchange firm. The representative reaffirmed the exchange’s commitment to working with the regulatory body on the next actions and stressed the company’s intention to seek clarification from the Nigerian SEC.
Binance’s Legal Woes Amidst Binance Nigeria Distancing
Binance distances itself from the Nigerian exchange, it simultaneously faces legal challenges from the United States Securities and Exchange Commission (SEC). The U.S. SEC has recently filed 13 charges against the exchange and its CEO, Changpeng Zhao, alleging various infractions.
Operating as an unlicensed exchange, broker-dealer, and clearing agency, as well as misrepresenting trade controls, are some of the accusations made against the exchange. The U.S. SEC claims that Changpeng Zhao and the exchange did not register as a broker-dealer, clearing agency, or exchange while receiving an astounding $11.6 billion in revenue from American clients.
An important milestone occurred on June 17 when U.S. Judge Amy Berman Jackson accepted a settlement between Binance.US, the American division of the exchange, and the U.S. SEC. This agreement resulted in the removal of a prior temporary restraining order that attempted to freeze all assets owned by the US exchange.
The exchange picked George Town, Cayman Islands, as its corporate headquarters after being founded in 2017 and presently being accessible in almost 100 nations. The business also established a subsidiary in Mahe, Seychelles, in 2019, broadening its worldwide reach.
Binance is still concentrating on responding to the claims made by both the Nigerian and American SECs despite the ongoing legal disputes. The world’s largest cryptocurrency exchange is working aggressively to find solutions to these problems while upholding its dedication to regulatory compliance and collaboration with appropriate authorities.