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The largest cryptocurrency exchange in the world has been barred from Nigeria by the Securities and Exchange Commission, which also ruled Binance's operations to be illegal.

The SEC stated on Friday that the firm was illegal since it was neither registered nor regulated and that "Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever."

The Commission promised to keep the public informed of any further regulatory actions pertaining to the functioning of Binance Nigeria Limited and other platforms of a similar nature. In order to provide more information on the matter, the SEC further stated that it will work with other Nigerian regulators.

In an effort to establish a middle ground between outright banning crypto assets and having no laws at all regarding their use, a set of regulations for digital assets were introduced last year.

The Central Bank of Nigeria outlawed the use of virtual currencies by Nigerian banks and financial organizations in 2021. However, in an effort to stem the popularity of cryptocurrency among Nigeria's tech-savvy people, the monetary authority introduced its own digital currency that same year.

The nation of Africa has warmly embraced cryptocurrency. Peer-to-peer trading was among the measures it took to get around the financial sector prohibition and was made possible by local cryptocurrency exchanges.

Following a crackdown by financial authorities in the US, Binance, the largest crypto trading platform in the world by volume, is experiencing similar problems. A new set of laws controlling the cryptocurrency industry in Canada was cited as a major factor in the exchange's decision to halt operations there earlier this month.

Read: US SEC files motion to freeze Binance assets over violations