Binance, a prominent cryptocurrency exchange, has clarified its dissociation from Binance Nigeria Limited, emphasizing that the recent ban imposed on the Nigerian firm by the Securities Exchange Commission (SEC) does not impact its operations.
According to a report by online platform Mariblock, it was revealed that the entity mentioned in the SEC circular, Binance Nigeria Limited, has been inactive since 2019 and has no affiliation with the entity operating Binance.com.
The SEC had warned against Binance Nigeria Limited’s solicitation of Nigerians to trade crypto assets on its platforms. However, a spokesperson from Binance stated that the mentioned entity is not connected to them. Binance is seeking clarity from the Nigerian SEC and is committed to working cooperatively with them on the next steps.
The spokesperson further reassured users that their assets on Binance are secure and accessible. The company clarified that Binance Nigeria Limited was registered for arbitrage purposes in anticipation of potential operations in Nigeria, which ultimately did not materialize, rendering the entity inactive.
While Binance deals with this matter, it continues to encounter difficulties in the United States. Binance.US, its American affiliate, announced the suspension of Dollar deposits as its banking partners prepare to halt Dollar withdrawal channels following the US Securities and Exchange Commission’s request to freeze its assets. Customers have been given a withdrawal deadline of Tuesday.
Furthermore, trading platform Robinhood Markets disclosed that it would delist certain crypto tokens as the US securities regulator intensifies its crackdown on the crypto sector.
These recent developments have raised concerns about the future of the cryptocurrency industry, which has faced various challenges in the past, including the FTX collapse, a banking crisis in the US, and a slowdown in funding for crypto start-ups.
