The only recognized Binance arm on the African continent is Binance Africa.
Binance CEO Changpeng ‘CZ‘ Zhao recently took to Twitter to express his dissatisfaction with Binance Nigeria Limited, claiming that the company is a scam. CZ added that Binance has, therefore, issued a cease and desist notice to the alleged scammer entity.
The notice serves as a legal warning, demanding that Binance Nigeria Limited immediately halt any activities falsely claiming association with the Binance brand. By taking this step, Binance aims to protect its reputation and dissociate itself from any fraudulent actions that may have been attributed to the Nigerian subsidiary.
This bold claim has sent shockwaves through the crypto community and left many questioning the credibility of the Nigerian subsidiary of the prominent exchange.
Meanwhile, the news comes only days after the Nigerian Securities and Exchange Commission (SEC) charged Binance Nigeria with operating illegally in the country. The securities regulators allege that Binance Nigeria has not obtained the necessary registration and regulatory approvals required to operate as a crypto exchange within the Nigerian market.
Consequently, the regulators warned Binance Nigeria to cease soliciting local investors to trade digital assets immediately. In addition, the regulator cautioned local investors that they lack the required safeguards when investing in crypto assets and risk losing their entire investment.
Ultimately, the actions and decisions made by Binance, in conjunction with regulatory authorities, will determine the path forward. It is important for the subsidiary to prioritize regulatory compliance, user protection, and transparency to rebuild trust and establish a sustainable presence within the Nigerian market.
Behind the Binance Nigeria Limited Scam
According to the search conducted, “Binance Nigeria Limited” is a registered entity with the Corporate Affairs Commission (CAC) in Nigeria. The company was registered with the CAC number-1639782 on the 9th of December, 2019, with a physical address in MABUSHI DISTRICT.
Furthermore, a Google search found that the provided address was the office address of Gitto Costruzioni Generali Nigeria Ltd, a construction firm. However, a search on the CAC website revealed that no records were available that matches the construction firm.
Meanwhile, there is also the presence of another organization called “Binance Holdings Limited” with similar registration details but no registration number, registration date, or social media handles for “Binance Nigeria Limited”, raising additional issues and potential problems.
Notably, the only recognized Binance arm on the African continent is Binance Africa. The platform has social media accounts verified with a blue tick on Twitter and Instagram and an unverified Facebook account with 45,000 followers.
Binance Africa plays a crucial role in promoting blockchain technology and crypto adoption across the African continent. Through its community efforts, Binance Africa aims to educate and engage individuals about the potential of blockchain technology, crypto, and related developments in the industry.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
