The Chief Executive Officer of Binance, Changpeng Zhao has disowned its Nigeria subsidiary, Binance Nigeria Limited calling it a scam.
 
Zhao made the clarification via his Twitter handle on Sunday.
 
He said, “Binance Nigeria Limited a scam entity.”

“Binance has issued cease & desist notice to the scammer entity “Binance Nigeria Limited”. Don’t believe everything you read in the news,” he wrote.
 
This comes after the federal government banned the operations of Binance Nigeria Limited.
 
The ban was disclosed in a circular by the Securities and Exchange Commission (the Commission).
 
The Commission, in the circular sighted by Naija News, stated that Binance Nigeria Limited is neither registered nor regulated, and its operations in Nigeria are, therefore illegal.
 
The circular reads: “The attention of the Securities and Exchange Commission (the Commission) has been drawn to the website operated by Binance Nigeria Limited, soliciting the Nigerian public to trade crypto assets on its various web and mobile-enabled platforms.

“Binance Nigeria Limited is neither registered nor regulated by the Commission, and its operations in Nigeria are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk.

“As the regulator with the statutory mandate of investor protection, the Commission urges Nigerians to be wary of investing in crypto-assets and crypto-asset related financial products and services if the service provider/its platform is not registered or regulated by the Commission. Nigerian investors are hereby warned that investing in crypto-assets is extremely risky and may result in total loss of their investment.

“By this circular, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever.

“The Commission shall provide updates on further regulatory actions with respect to the activities of Binance Nigeria Limited, and other similar platforms and shall work with other regulators in Nigeria to provide further guidance on this matter.”