Binance Skipped SEC Registration – Witness Testifies
In the ongoing trial of Binance Holdings Limited and its Executive Officer, Tigran Gambaryan, EFCC’s first prosecution witness, Abdulkadir Abbas, testified that Binance did not register with Nigeria’s Securities and Exchange Commission (SEC) as required by law. The trial, presided over by Justice Emeka Nwite of the Federal High Court, continued on July 2, 2024.
The EFCC has charged Gambaryan and Binance Holdings with tax evasion, currency speculation, and money laundering amounting to $34.4 million. During cross-examination, Abbas stated that Binance’s activities did not conform to the SEC’s regulatory requirements as outlined in the Investment and Securities Act of 2007.
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Abbas explained that any company engaging in digital asset services must register with the SEC and pay the necessary fees before commencing operations. He confirmed that SEC rules, updated in 2022, require registration for Digital Asset Offering Platforms (DAOP), Digital Assets Exchanges (DAE), and Digital Assets Custodians (DAC).
Abbas clarified that the SEC’s regulations are designed to govern the capital market and ensure clarity and security. He also affirmed his understanding of digital asset activities, emphasizing that SEC’s rules mandate registration for entities involved in virtual assets and digital securities.
The trial continues, with further sessions scheduled to address the specifics of SEC regulations and Binance’s compliance.
