Binance Busts a Scam: Issues Cease and Desist to Entities in UK and Nigeria

In short: Binance has issued a cease and desist order to Binance Ltd in the UK after a Reddit post questioned where the company was located. Binance clarified that the company mentioned is "a scam company - not affiliated with Binance in any way.” This is the second cease and desist order issued by Binance after Binance Nigeria was declared an illegal entity by the Nigerian Securities and Exchange Commission earlier this week. Moreover, Binance Markets Limited (BML), a UK subsidiary of the exchange, has withdrawn its registration with the country's Financial Conduct Authority (FCA).

Our quick analysis:
Binance, one of the world's largest crypto exchanges, has recently taken action against entities falsely claiming to be affiliated with the company. In the UK, Binance issued a cease and desist order to Binance Ltd after a Reddit post went viral claiming that the Binance office was nothing more than a "utility closet" in a small town in Suffolk County. Binance has clarified that it has no business with the referenced company and that it is, in fact, a "scam company". Interestingly, Companies House, the UK's company registrar, has listed more than 2,400 companies at the same nondescript building as Binance Ltd.

But that's not all. Binance also issued a cease and desist order to Binance Nigeria Limited after the Nigerian Securities and Exchange Commission (SEC) declared the company to be an illegal entity. The SEC order required the Nigerian entity to stop all activities purporting any association with Binance.

This action comes on the heels of a directive from the Central Bank of Nigeria (CBN) earlier this year, which directed financial institutions to stop facilitating crypto transactions and immediately close all accounts owned by persons or entities conducting crypto transactions. However, CBN Deputy Governor Adamu Lamtek later clarified that the crypto ban was only meant to keep crypto activities away from the banking sector.

Meanwhile, in the UK, Binance Markets Limited (BML), a subsidiary of the Binance exchange, has withdrawn its registration with the country's Financial Conduct Authority (FCA), meaning it can "no longer provide regulated activities and products". Binance launched BML in June 2020 after acquiring a firm called EddieUK to enter the UK market and launch Binance.UK.

In conclusion, Binance has made it clear that it is not tolerating any fraudulent activity from entities claiming to be affiliated with the company. Whether it's a "utility closet" in the UK or an illegal entity in Nigeria, Binance is taking action to protect its reputation and uphold its commitment to a safe and secure crypto trading environment.

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Binance, one of the world's largest crypto exchanges, has recently taken action against entities falsely claiming to be affiliated with the company. In the UK, Binance issued a cease and desist order to Binance Ltd after a Reddit post went viral claiming that the Binance office was nothing more than a "utility closet" in a small town in Suffolk County. Binance has clarified that it has no business with the referenced company and that it is, in fact, a "scam company". Interestingly, Companies House, the UK's company registrar, has listed more than 2,400 companies at the same nondescript building as Binance Ltd.

But that's not all. Binance also issued a cease and desist order to Binance Nigeria Limited after the Nigerian Securities and Exchange Commission (SEC) declared the company to be an illegal entity. The SEC order required the Nigerian entity to stop all activities purporting any association with Binance.

This action comes on the heels of a directive from the Central Bank of Nigeria (CBN) earlier this year, which directed financial institutions to stop facilitating crypto transactions and immediately close all accounts owned by persons or entities conducting crypto transactions. However, CBN Deputy Governor Adamu Lamtek later clarified that the crypto ban was only meant to keep crypto activities away from the banking sector.

Meanwhile, in the UK, Binance Markets Limited (BML), a subsidiary of the Binance exchange, has withdrawn its registration with the country's Financial Conduct Authority (FCA), meaning it can "no longer provide regulated activities and products". Binance launched BML in June 2020 after acquiring a firm called EddieUK to enter the UK market and launch Binance.UK.

In conclusion, Binance has made it clear that it is not tolerating any fraudulent activity from entities claiming to be affiliated with the company. Whether it's a "utility closet" in the UK or an illegal entity in Nigeria, Binance is taking action to protect its reputation and uphold its commitment to a safe and secure crypto trading environment.