What Crypto Exchanges Are Banned in Nigeria in 2025?

There’s no simple answer to whether crypto exchanges are banned in Nigeria - because they aren’t, not exactly. Instead, Nigeria has shifted from outright bans to a strict licensing system. If an exchange doesn’t have a license from the Securities and Exchange Commission (SEC), it’s effectively blocked from offering Naira services. But users can still access unlicensed platforms using VPNs - even if it’s not legal.

What Changed in Nigeria’s Crypto Rules?

Before March 2025, Nigeria’s crypto scene was in chaos. In 2021, the Central Bank of Nigeria (CBN) told banks to cut off services to crypto businesses. That didn’t stop people from trading - it just made it harder. By late 2023, the CBN reversed course and allowed banks to work with licensed crypto firms. Then, in March 2025, President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA 2025), which completely rewrote the rules.

This new law treats digital assets like securities. That means any exchange offering trading, custody, or conversion of crypto to Naira must get licensed by the SEC. Unlicensed platforms can’t legally accept Naira deposits or withdrawals. They can’t advertise. They can’t partner with Nigerian banks. But they can still operate in the background - if users find a way around the blocks.

Which Exchanges Are Actually Banned?

The SEC hasn’t published a public list of banned exchanges. But here’s what we know: any platform without a license is operating illegally under Nigeria’s new framework. That includes most international exchanges that haven’t applied for or received approval.

Binance is the most talked-about case. In February 2024, Binance stopped Naira trading on its peer-to-peer platform. Nigerian telecom providers blocked access to binance.com. But users can still log in, hold crypto, and send it to external wallets. They just can’t deposit or withdraw Naira directly. So Binance isn’t banned - it’s restricted. It’s like a store that can’t take cash but still lets you walk in with your own money.

Other major international exchanges like Kraken, Coinbase, and Bybit have not applied for Nigerian licenses as of late 2025. That means they’re not officially allowed to serve Nigerian customers for Naira transactions. But again, users access them via VPNs. The SEC doesn’t shut down websites - it shuts down partnerships. If a Nigerian bank tries to process payments for an unlicensed exchange, the bank gets fined.

Which Exchanges Are Licensed and Legal?

Only two exchanges have received full SEC licensing so far: Quidax and Busha. Both are Nigerian-founded platforms that built their systems to meet strict compliance standards.

These licensed exchanges must:

• Verify every user’s identity (KYC)
• Monitor all transactions for money laundering (AML)
• Keep detailed records for at least five years
• Report suspicious activity to the Nigerian Financial Intelligence Unit (NFIU)
• Have a local physical presence and registered business in Nigeria

Because of these rules, Quidax and Busha offer slower withdrawals and more paperwork than Binance. But they also offer better customer support, dispute resolution, and legal protection. Users who’ve switched report fewer scams and faster responses when something goes wrong.

Why Can’t More Exchanges Get Licensed?

Getting a license isn’t easy. The SEC requires detailed documentation on technical infrastructure, financial backing, cybersecurity, and compliance staff. Smaller exchanges can’t afford the legal teams or IT systems needed. One startup founder told a local tech magazine it took 11 months just to prepare the application - and they still got rejected on the first try.

The SEC also runs a regulatory sandbox for testing new crypto products. But only companies with strong capital and proven tech can join. That means most international exchanges - especially those based outside Africa - don’t bother. The cost and complexity aren’t worth it unless they plan to scale big in Nigeria.

What Happens If You Use a Banned Exchange?

There’s no law saying you, the user, will go to jail for using Binance or Coinbase. The law targets the exchanges and banks - not individuals. But there are risks:

• If your bank finds out you’re sending money to an unlicensed exchange, they can freeze your account.
• You have no legal recourse if you get scammed. Licensed exchanges must have dispute processes. Unlicensed ones don’t.
• Using a VPN to access blocked sites violates Nigeria’s cybercrime laws. You could face fines or prosecution if caught.

Most users who use unlicensed platforms do so without issue - but they’re gambling on enforcement not catching up to them.

How Is Nigeria’s Approach Different From Other Countries?

Some African nations like Egypt and Morocco have outright banned crypto. Others, like South Africa, allow it with light oversight. Nigeria chose a third path: regulated access.

Between July 2024 and June 2025, Nigeria received an estimated $92.1 billion in cryptocurrency value - more than any other African country. That’s double South Africa’s volume. No ban could stop that kind of demand. So instead of fighting adoption, Nigeria decided to control it.

The result? Licensed exchanges are growing. More Nigerian fintech startups are building crypto tools. Foreign investors are watching. The SEC has over 40 applications under review. By 2026, there could be 10+ licensed platforms.

What’s Next for Crypto in Nigeria?

The Nigeria Tax Administration Act (NTAA) 2025 takes effect in 2026. It will require exchanges to withhold taxes on crypto sales and report user income. That’s a big change. It means even licensed platforms will need new software to track gains and losses.

Regulators are also looking at DeFi, stablecoins, and NFTs. Right now, artistic NFTs are fine. But if an NFT is sold as an investment - like a share in a future project - it’s treated as a security and falls under SEC rules.

The goal isn’t to kill crypto. It’s to make it safer, more transparent, and part of the formal economy. For users, that means fewer scams. For businesses, it means clearer rules. For the country, it means turning a chaotic market into a financial innovation hub.

Should You Use a Licensed Exchange?

If you’re trading small amounts and just want to buy Bitcoin, you might not care. But if you’re using crypto for business, savings, or remittances - go licensed.

Quidax and Busha have Nigerian-language support, local customer service, and bank integration. You can deposit Naira via bank transfer, mobile money, or even USSD. Withdrawals take 1-3 days, not seconds. But you’re protected by law.

Unlicensed exchanges might be faster. But if you lose funds, there’s no one to call. No regulator to file a complaint with. No legal backup. In a country where fraud is common, that’s a big risk.

Final Thoughts

Nigeria didn’t ban crypto. It made it legal - but only if you play by the rules. The days of wild west trading are over. The future belongs to platforms that follow the law, not those that ignore it.

If you’re a Nigerian user, your best move isn’t to find a way around the ban. It’s to use a licensed exchange. It’s slower. It’s more paperwork. But it’s the only way to stay safe - and stay legal.