Binance disassociates from Binance Nigeria Limited (BNL), sends 'cease and desist' notice

Binance disassociates from Binance Nigeria Limited (BNL), sends ‘cease and desist’ notice

Time Stamp: June 30, 2023 1:00 AM
Binance disassociates from Binance Nigeria Limited (BNL), sends 'cease and desist' notice PlatoBlockchain Data Intelligence. Vertical Search. Ai.
  • The Nigerian Securities and Exchange Commission (SEC) released a circular on June 9, declaring Binance Nigeria Limited (BNL) illegal in the country.
  • Binance CEO Changpeng Zhao has made an official announcement regarding issuing a cease and desist notice to Binance Nigeria Limited (BNL), a fraudulent entity.
  • The creators of Binance Nigeria Limited have indicated that BNL is not affiliated with Binance.

Binance CEO Changpeng Zhao has made an official announcement regarding issuing a cease and desist notice to Binance Nigeria Limited (BNL), a fraudulent entity. Zhao announced on Twitter on Sunday, June 18. The Nigerian Securities and Exchange Commission (SEC) released a circular on June 9, declaring Binance Nigeria Limited (BNL) illegal in the country.

According to reports, a spokesperson from Binance clarified that the entity mentioned in the SEC circular is not affiliated with the company. The spokesperson emphasized the company’s intention to seek clarification from the Nigerian SEC and expressed their commitment to cooperating with them in the next steps.

Binance active in Africa

Binance, the world’s largest cryptocurrency exchange, has expanded its African activities in the last three months. In March 2023, Binance launched its first African fiat-to-cryptocurrency exchange in Uganda. The exchange allows users to buy and sell cryptocurrencies with Ugandan shillings.

In April 2023, Binance partnered with the African Development Bank (AfDB) to launch a $100 million fund to support blockchain projects in Africa. This fund will support projects that use blockchain technology to improve financial inclusion, economic development, and social impact.

Additionally, in May 2023, Binance announced that it would be opening a new office in South Africa. The office will be in Johannesburg and support Binance’s growing African user base.

Binance’s expansion into Africa is part of a larger trend of cryptocurrency exchanges moving into the continent. The African market has much growth potential due to the continent’s young and tech-savvy population.

Here are some other notable Binance activities in Africa in the last three months:

  • In March 2023, Binance hosted a hackathon in Kenya to promote blockchain development in Africa.
  • In April 2023, Binance launched a series of educational workshops in Nigeria to teach people about cryptocurrency.
  • In May 2023, Binance partnered with the Ethiopian government to develop a blockchain-based platform for issuing digital assets.

Binance’s African activities signify the continent’s growing importance in cryptocurrency. Moreover, as more and more people in Africa adopt cryptocurrency, Binance is well-positioned to capitalize on this growth.

Binance Nigeria Limited (BNL), not Binance affiliated

The observant readers may wonder how Binance launched a series of educational workshops in Nigeria in April 2023. However, recent developments have revealed that Binance Nigeria (BNL) is not affiliated with Binance. There is a lot to unpack here. Binance Global was affiliated with the Nigerian workshop tour. So we can clearly distinguish between Binance Nigeria Limited (BNL) and Binance.

BNL is a registered company in Nigeria. Public documents identify Ahassan Ifzal Mughal, Esq., holding the title of Barrister, Solicitor & Advocate of the Supreme Court of Nigeria, as the individual responsible for registering Binance Nigeria Limited (BNL). Reports indicate that the responsible individuals have stated that BNL is not affiliated with Binance. Mughal said that he registered the company for “arbitrage purposes”, hoping they could sell the incorporated name to Binance if Zhao’s exchange were to establish a local branch in Nigeria.

Despite Binance’s denial of affiliation with Binance Nigeria Limited (BNL), as mentioned in the SEC circular, the company faces a lawsuit from the United States Securities Exchange Commission (SEC). The U.S. SEC has filed 13 charges against Binance entities and Changpeng Zhao.

The charges include allegations of operating as an unregistered exchange, broker-dealer, clearing agency, and misrepresenting trading controls. The U.S. SEC stated that despite earning $11.6 billion from U.S. customers, Binance and Zhao failed to register as an exchange, broker-dealer, or clearing agency.

In a recent development on June 17, U.S. Judge Amy Berman Jackson approved an agreement between Binance.US, Binance, and the U.S. SEC. This agreement resulted in the dismissal of a previous temporary restraining order that aimed to freeze all Binance.US assets.

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