Binance, the world's largest cryptocurrency exchange, has recently issued a cease and desist order to "Binance Nigeria Limited" following the Nigerian Securities and Exchange Commission's (SEC) declaration of the entity as illegal, Reuters tells us in a report.
Binance CEO Changpeng Zhao made the announcement through a tweet on Sunday, June 18, denouncing the Nigerian company as a "scammer entity."
Binance Nigeria Limited Deemed Illegal
The SEC's circular, released on June 9, explicitly stated that Binance Nigeria Limited was not registered or regulated, making its operations in Nigeria illegal.
The entity had been courting Nigerian investors through its website, raising concerns about the lack of oversight and potential risks for local investors.
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Tough Times for Binance
Binance, headquartered in the Cayman Islands, has recently faced a series of recent setbacks. The company has announced plans to exit several countries, including the Netherlands, Cyprus, Canada, and Australia.
Furthermore, Binance and CEO Changpeng Zhao were recently charged by the US Securities and Exchange Commission (SEC).
The SEC's lawsuit against Binance alleges various violations, including the artificial inflation of trading volumes, diversion of customer funds, misleading investors about market surveillance controls, and operating as an unregistered exchange.
Binance strongly disputes these charges, asserting its commitment to transparent and compliant operations.
These allegations highlight the importance of regulatory compliance within the cryptocurrency industry, which has seen increased scrutiny in recent years.
Binance Responds
In response to the Nigerian SEC's circular, a spokesperson from Binance clarified that the mentioned entity was not affiliated with the company.
Binance expressed its intention to seek clarity from the Nigerian regulatory body and reaffirmed its willingness to cooperate regarding any necessary actions.
Cointelegraph reports that on June 17, U.S. Judge Amy Berman Jackson approved an agreement between Binance.US, the US subsidiary of Binance, and the US SEC.
As a result, a previous temporary restraining order aimed at freezing Binance.US assets was dismissed. This agreement signifies a step towards resolving the regulatory dispute in the United States.
Binance operates in approximately 100 countries and has established subsidiaries in various jurisdictions, including the Cayman Islands and Seychelles.
However, the recent regulatory actions against the exchange highlight cryptocurrency platforms' challenges in navigating the evolving global regulatory landscape.
As the investigation and legal proceedings continue, the cryptocurrency community awaits further developments regarding Binance's operations and its responses to the charges against the company.
In Other News
In a concerning turn of events, several US federal government entities have fallen victim to a large-scale cyberattack that exploited a vulnerability in commonly used software.
We reported that the attack has centered on compromising MOVEit applications, leaving numerous government departments reeling from the assault on their digital infrastructure.
Eric Goldstein, the executive assistant director for cybersecurity at the US Cybersecurity and Infrastructure Security Agency (CISA), revealed that authorities are actively supporting the affected government departments.
CISA has swiftly initiated a comprehensive assessment to determine the full extent of the attack and is working diligently to facilitate prompt and effective remediation efforts.
Stay posted here at Tech Times.
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