Nigeria issues second warning against phony Binance exchange

Nigeria’s Securities and Exchange Commission issued a warning targeting a scam company — Binance Nigeria Limited — operating under the same name as Binance as an unregulated and unregistered exchange.

Because Binance is operating without any regulatory oversight, the SEC warned that “any member of the investing public dealing with the entity making such solicitation is doing so at his/her own risk.”

This is the second warning the Nigerian regulator has made about the scam company. In early June, the SEC said it was made aware of Binance Nigeria Limited and ordered the entity to “immediately stop soliciting Nigerian investors in any form whatsoever.”

The second warning echoes the June order of asking “platform providers, making such solicitations” to stop soliciting investors in Nigeria. 

Binance did not immediately respond to a request for comment on the warning issued by its impersonator.

Outside of Nigeria, the real Binance has struggled with the regulatory environment in Europe and the US — despite the fact that Binance.US, not Binance, operates in the US.

Back in June, French authorities made an on-site visit to Binance as reports claimed that the global exchange was facing an investigation by French authorities. The global exchange, however, said that the on-site visit was “part of regulatory obligations to which all financial institutions must adhere.” It added that it spent “considerable time” and resources cooperating with “law enforcement globally.”

Binance has also withdrawn from multiple European countries as it struggles with registration. Europe recently passed the Markets in Crypto Assets Act (MiCA), which aims to regulate the crypto industry.

Last week, Binance “proactively” withdrew its application to operate in Germany, though earlier reports had stated that BaFin — Germany’s regulatory agency — had declined to issue a license last month. 

In June, Binance also announced its plans to exit the Netherlands and Cyprus. 

It’s not all bad news for Binance, however, as it did announce that it was one step closer to receiving full approval from Dubai’s regulatory agency. The Virtual Asset Regulatory Authority issued Binance a minimum viable product license on Monday, meaning that it will only need to receive a full market product license to offer more authorized services.

Update Monday, July 31 at 10:38 am ET: Corrected to clarify that Binance Nigeria Limited is an entity with no ties to the real Binance

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