Just a few years ago, if you asked anyone, “Is crypto legal in Nigeria?” or “Is crypto banned in Nigeria?” the answers would be confusing at best.
Some people would say yes, others would say no, and most people didn’t know what to believe.
In 2021, the Central Bank of Nigeria told banks to stay away from anything crypto-related. People panicked. Platforms shut down. Traders moved underground.
But while all of that was happening, Nigerians kept trading. Quietly. Boldly. Billions of naira were moving through digital wallets across the country.
Fast forward to 2025, everything has changed.
Thanks to a brand-new law called the Investment and Securities Act (ISA) 2024, crypto in Nigeria is no longer in a grey area. It’s legal. It’s regulated. And it’s finally getting the structure it needs to grow.
In this blog post, we’ll break it all down for you in plain, simple language.
- What does the new law actually say?
- Who’s in charge: CBN or SEC?
- Can you use crypto for business or payments?
- How does crypto tax come in?
- And most importantly — how can you trade safely, legally, and without drama in 2025?
If you’ve ever been confused about cryptocurrency regulation in Nigeria, this is the only guide you need.
Let’s get into it.
Is Cryptocurrency Legal in Nigeria in 2025?
Yes, cryptocurrency is now legal in Nigeria.
This is no longer a rumour or guesswork, it’s now the law.
In March 2025, the Nigerian government passed a very important law called the Investment and Securities Act in Nigeria 2025.
This new law officially recognises digital currencies like Bitcoin, Ethereum, and others as part of the financial system.
In simple terms, crypto is now a real part of Nigeria’s economy, not something shady or illegal.
Crypto is Now Classified as a Security
Under this new law, all forms of digital assets, including cryptocurrencies, are now classified as securities.
That means they are treated just like stocks or bonds. They must follow real rules. They can’t just operate anyhow.
This is huge. It means crypto in Nigeria now has proper recognition. It’s no longer stuck in a grey area. The legal status of cryptocurrency in Nigeria is now clear: it’s legal, but it must follow the rules.
Who Regulates Crypto in Nigeria?
Crypto is now regulated by the Securities and Exchange Commission (SEC), not the Central Bank of Nigeria (CBN).
Before now, the CBN didn’t want banks to have anything to do with crypto. That caused a lot of confusion. But things changed.
Now, CBN is no longer banning crypto, and the SEC is in charge. They provide clear SEC crypto guidelines in Nigeria to control how crypto platforms operate. If any company wants to offer crypto services, it must register with the SEC and follow all their rules.
This system helps the government fight fraud and scams. It also makes it safer for Nigerians who want to buy, sell, or invest in crypto.
Only SEC-Licensed Platforms Are Legal
If you want to buy or sell crypto in Nigeria, you need to use a platform that’s officially licensed by the Securities and Exchange Commission (SEC). This is how the government now separates legit crypto businesses from scams.
Busha and Quidax, for example, are two crypto exchanges that have already received provisional approval from the SEC.
This means they passed the necessary checks and can now offer services legally.
This approval comes through a special program called the regulatory sandbox for crypto in Nigeria, which helps new platforms test their systems under SEC supervision before going public.
Is Crypto Peer-to-Peer Still Allowed in Nigeria?
Yes, peer-to-peer crypto trading in Nigeria is still common, especially for people who prefer informal trades. But here’s the risk: peer-to-peer platforms don’t offer much protection if something goes wrong.
That’s why the government is pushing for centralised, regulated platforms. These platforms must follow strict rules that protect your money and your personal data.
The Law That Legalised Crypto in Nigeria — What ISA 2024 Says About Crypto
If you’re wondering how crypto in Nigeria became legal, it all comes down to one law: the Investment and Securities Act (ISA) in Nigeria 2025.
This law was signed by President Bola Tinubu in March 2025. It replaced the old ISA 2007, which never mentioned crypto at all.
That old law was outdated — it was written long before Bitcoin became a big deal.
ISA 2024 Replaced the Old Rules
Before ISA 2024, there was no clear answer to questions like:
“Is cryptocurrency legal in Nigeria in 2025?” or “Is Bitcoin legal in Nigeria now?”
Everything was confusing. The Central Bank said one thing, the SEC said another, and people didn’t know who to listen to. Some thought crypto was illegal. Others didn’t care and kept trading in secret.
What Kinds of Crypto Assets Are Covered?
The law didn’t just stop at Bitcoin or Ethereum. It went further. ISA 2024 covers a full range of digital finance tools, including:
1. Currencies
Like Bitcoin, Ethereum, DOGE and Solana — any digital money you can trade or invest in.
2. Tokens
This includes utility tokens, security tokens, and other blockchain-based assets used for services or projects.
3. Digital Investment Contracts
If a company raises money using blockchain or crypto and promises returns, that’s a contract. And now it’s regulated.
The full category is what the law calls “digital assets classified as securities in Nigeria.”
How ISA 2024 Protects Crypto Investors
1. SEC is Going After Scammers
With the new law in place, the SEC is now actively enforcing crypto regulation in Nigeria. That means:
- Banning fake platforms
- Freezing shady operations
- Exposing cryptocurrency scams in Nigeria before they grow too big
The law is especially tough on Ponzi schemes and unregistered exchanges.
2. LEIs Help Track Real Platforms
The law now requires licensed crypto businesses to use something called Legal Entity Identifiers (LEIs). Think of it as a unique ID card for financial companies.
With this ID, the SEC can trace who owns a platform, who’s running it, and what they’re doing with your money. It makes digital asset regulation in Nigeria more transparent.
3. The Crypto Offences Penalties Are Serious
Under the crypto law in Nigeria, anyone caught running an illegal crypto operation or any Ponzi scheme can face:
- Fines of ₦20 million or more
- Up to 10 years in prison
- Or both
Also Read: Forex, Crypto, Stock, Index & Commodities Trading Stats & Forecasts in Nigeria in 2025
CBN’s Role vs. SEC’s Role in 2025: Who Regulates Crypto in Nigeria Now?
If you’re still confused about who’s really in charge of crypto in Nigeria, you’re not alone.
For years, the government’s position was all over the place. But as of 2025, there’s now zero confusion.
Let’s make it simple.
What Did CBN Do Before?
Back in 2021, the Central Bank of Nigeria (CBN) gave an order that shook the whole crypto scene: it told Nigerian banks to stop working with any crypto platforms. People panicked. Accounts were closed. Many thought that crypto was banned.
But here’s the truth: crypto was never officially declared illegal — it just wasn’t supported.
What Changed After 2023?
Fast forward to mid-2023, a major shift happened when President Bola Tinubu appointed Yemi Cardoso as the new CBN governor.
Under Cardoso’s leadership, the CBN softened its position.
Fast forward to March 2025, CBN now allows banks to work with crypto companies — but only if those companies are licensed by the Securities and Exchange Commission (SEC).
That means if you’re a virtual asset service provider in Nigeria and you’re approved by the SEC, banks can work with you freely.
This move opened the door for safe, regulated transactions. It also helped to move crypto back into the formal financial system.
So, Who Regulates Crypto in Nigeria Now?
It’s no longer the CBN. The real power now belongs to the SEC — the Securities and Exchange Commission.
According to the Investment and Securities Act in Nigeria 2025, the SEC is now fully in charge of all cryptocurrency regulation in Nigeria. They are the official referee. They set the rules, issue licenses, monitor crypto exchanges, and handle violations.
If you want to register a crypto exchange, you must follow the SEC crypto guidelines in Nigeria.
What Does the SEC in Nigeria Do Exactly?
The SEC controls the crypto law in Nigeria, including:
- Licensing and approving legal crypto trading platforms in Nigeria
- Managing crypto compliance requirements in Nigeria
- Enforcing penalties for scams and frauds (including cases like the Binance legal case in Nigeria)
- Running the regulatory sandbox for crypto in Nigeria, where new crypto companies can test their ideas before launching to the public
- Track platforms using tools like Legal Entity Identifiers, and they oversee investor protection.
Difference Between CBN and SEC
- CBN handles money — naira, interest rates, and inflation.
- SEC handles investments — stocks, bonds, and now, crypto in Nigeria.
Who Can Offer Crypto Services in Nigeria Now?
Only Registered VASPs and DAOPs Are Allowed
To legally run a crypto business in Nigeria, you must be one of the following:
- Virtual Asset Service Provider (VASP): This includes exchanges, wallets, and platforms that let people buy, sell, or store cryptocurrencies.
- Digital Asset Offering Platform (DAOP): These are platforms that raise money by offering digital assets like tokens, usually for investments or project funding.
Requirements for Crypto Exchanges and Platforms Operating in Nigeria
You can no longer just build a website and start collecting people’s money. Whether it’s a crypto app, exchange, wallet, or investment platform, you must be registered and licensed by the SEC. This is now the law under the Investment and Securities Act in Nigeria 2025.
Let’s break it down in the simplest way.
The Sandbox Model: ARIP Explained
Most new platforms must first enter something called the Accelerated Regulatory Incubation Program (ARIP) — also known as the sandbox.
This model allows companies to test their services under SEC supervision.
If the platform behaves well, follows the rules, and proves it’s safe for users, the SEC may then give it a provisional license.
Think of it like a “trial period” before getting a full license.
This is part of the broader crypto exchange registration process in Nigeria, and it helps protect users from fraud, fake apps, or weak platforms that can’t handle real risks.
Platforms That Are Already Compliant
So far, a few Nigerian crypto companies have made it through the sandbox and received official approval:
- Busha
- Quidax
These are now legal crypto trading platforms in Nigeria. You can use them with more peace of mind because they’ve passed through SEC checks.
Can You Use Crypto for Payments or Business Transactions In Nigeria?
The short answer? Yes, but with caution.
Even though crypto in Nigeria is now legal under the new law, it does not mean it’s official money — like the naira. That’s where a lot of people get confused.
Crypto is Legal, But Not Legal Tender
Being legal doesn’t mean it’s accepted everywhere. In Nigeria, only the naira is recognized as legal tender.
That means shops, banks, or businesses are not mandated to accept Bitcoin or any other crypto as payment.
So even though crypto legality in Nigeria is now a fact (thanks to the Investment and Securities Act in Nigeria 2025), crypto is still seen as property, not currency.
You can own it, trade it, or invest in it — but no one is legally forced to accept it like they would with naira.
Can You Use Crypto in Contracts or Business Deals?
Yes, you can — but it depends on the agreement.
If both sides agree to use crypto for payment in a contract, that’s allowed. For example:
- A freelancer may accept USDT instead of naira.
- A seller can list crypto as a payment method for digital goods.
This happens mostly in e-commerce, digital services, or among tech-savvy users.
But because crypto is not legal tender, you need to be careful.
If a dispute happens, enforcing the deal in court could be tricky, especially if the crypto value changes suddenly.
Crypto Taxation and Compliance Obligations in Nigeria
As crypto in Nigeria becomes more recognised and structured, the next big focus is clear: taxation and compliance.
In simple terms, if you’re making money from crypto, the government wants to make sure you’re paying your fair share, just like with any other investment.
SEC Is Building a Tax System Around Registered Platforms
The Securities and Exchange Commission (SEC) is leading the charge in making cryptocurrency regulation in Nigeria more visible and accountable.
Their main strategy? Focus on the platforms they can monitor.
By requiring crypto exchanges to register and operate within legal frameworks, the SEC makes it easier to track transactions, calculate profits, and apply taxes correctly.
If you’re using a centralised, licensed platform like Busha or Quidax, it’s more likely that your crypto activity will be visible to tax authorities.
This is all part of a broader plan to close loopholes and prevent tax avoidance, especially after the crypto tax evasion crackdown in Nigeria.
What Could Happen in the Future?
Right now, there is no full-blown crypto tax law in Nigeria. But the government is already working on it. And when the system is finally in place, they’ll likely focus on things like:
- Taxes on profits made from buying and selling crypto
- Income tax on payments received in crypto
- Capital gains taxes on long-term holdings
Future crypto investors should expect stricter reporting rules.
And when those rules hit, anyone using unlicensed platforms may struggle to prove their income, expenses, or even defend themselves if they’re audited.
2 Mistakes to Avoid in Nigeria’s New Crypto Landscape
1. Using Unregistered Platforms
This is the fastest way to lose your money.
If a platform isn’t licensed by the Securities and Exchange Commission (SEC), it’s not legally allowed to operate in Nigeria.
And if something goes wrong, like a hack or exit scam (like MMM and CBEX), you have zero protection.
Avoid any exchange that isn’t listed under the SEC crypto guidelines in Nigeria.
Instead, stick to legal crypto trading platforms in Nigeria like Busha and Quidax that operate through the regulatory sandbox for crypto in Nigeria or hold provisional licenses.
This is what separates legal crypto platforms from high-risk, unregulated ones.
2. Falling for “Guaranteed ROI” Crypto Schemes
If someone promises you “double your money” or “10% weekly returns,” run. It’s almost always a scam.
Even with crypto now legal in Nigeria, fraud still exists.
And these Ponzi schemes are now being directly targeted under the Investment and Securities Act in Nigeria 2025.
The law gives the SEC the power to jail fraudsters for up to 10 years and fine them ₦20 million or more. But that only helps after people have lost their money.
The smarter move is to avoid these traps in the first place.
FAQs on Crypto Regulation in Nigeria
1. What is the crypto law in Nigeria now?
The crypto law in Nigeria is defined by the Investment and Securities Act in Nigeria 2025, which officially recognises cryptocurrencies as securities regulated by the SEC, not outlawed by the Central Bank.
2. Is Bitcoin trading allowed in Nigeria in 2025?
Yes, Bitcoin trading is legal in Nigeria in 2025, but only through platforms registered with the Securities and Exchange Commission (SEC) as required under the new law.
3. Is crypto allowed by the Central Bank of Nigeria?
Yes, the Central Bank of Nigeria now allows banks to work with SEC-licensed virtual asset providers, but it no longer regulates the crypto space directly.
4. Who regulates cryptocurrency in Nigeria now — SEC or CBN?
As of 2025, the Securities and Exchange Commission (SEC) is the official crypto regulator in Nigeria, not the Central Bank, under the crypto regulation in Nigeria 2025 framework.
5. What does the Investment and Securities Act say about crypto in Nigeria?
The Act expands the definition of securities to include digital assets, placing all digital asset regulation in Nigeria under SEC authority, making crypto legal and monitored.
6. Does Nigeria support cryptocurrency in 2025?
Yes, cryptocurrency regulation in Nigeria now supports digital assets under a legal and structured framework, replacing the old system of unclear policies.
7. What is the legal status of Bitcoin and other cryptocurrencies in Nigeria today?
The Bitcoin legal status in Nigeria 2025 is now clear — it is legal and treated as a security, not a currency, and regulated by the SEC.
8. Where can I trade crypto legally in Nigeria?
You can trade on legal crypto trading platforms in Nigeria like Busha and Quidax, which are licensed or registered under the SEC’s sandbox model.
9. What are the safest crypto exchanges to use in Nigeria in 2025?
The safest options are platforms that have completed the crypto exchange registration process in Nigeria, such as Quidax and Busha, under the supervision of the SEC.
10. How do I register a crypto company or exchange in Nigeria?
To register, you must apply as a Virtual Asset Service Provider in Nigeria and go through the SEC’s licensing process or operate within its regulatory sandbox.
11. What platforms are licensed for crypto trading in Nigeria now?
As of 2025, licensed platforms for crypto in Nigeria include Quidax and Busha, which operate under SEC approval through the Accelerated Regulatory Incubation Program (ARIP).
12. What are the licensing rules for crypto platforms in Nigeria?
The licensing of crypto platforms in Nigeria requires registration with the SEC as a VASP or DAOP, compliance with investor protection laws, and participation in the SEC sandbox or full licensing process.
13. Is Binance legal in Nigeria today?
Due to unresolved compliance issues, Binance’s legal case in Nigeria remains controversial, and the platform is not officially licensed by the SEC to operate within the country.
14. Is crypto trading taxed in Nigeria?
Crypto is not yet taxed directly, but the SEC is building a system for future enforcement under the upcoming crypto tax law in Nigeria 2025, focused on centralised, traceable platforms.
15. How do I report crypto income in Nigeria?
There is no structured process yet, but as a crypto tax evasion crackdown may happen not long from now, using SEC-licensed platforms will help with traceability and income documentation for future tax declarations.
16. What is the crypto tax law in Nigeria 2025?
The crypto tax law in Nigeria 2025 is still evolving, but the SEC is working on a framework to ensure tax compliance through licensed exchanges where trades can be monitored.
17. What are the crypto compliance requirements in Nigeria?
Crypto compliance requirements in Nigeria include SEC registration, investor verification (KYC), LEI usage, platform transparency, and adherence to anti-fraud policies under ISA 2024.
18. How do I avoid crypto tax evasion issues in Nigeria?
To stay compliant and avoid a crypto tax evasion crackdown in Nigeria, trade only on SEC-approved platforms and keep records of your transactions for future tax reporting.
19. What are the penalties for not complying with crypto tax rules in Nigeria?
Under ISA 2024, SEC enforcement on crypto in Nigeria includes penalties like ₦20 million fines and jail terms of up to 10 years for fraud or unlicensed operations.
20. Is it safe to invest in crypto in Nigeria now?
Yes, crypto investor protection in Nigeria has improved significantly under SEC oversight, making it safer to invest if you use registered and regulated platforms only.
21. How do I avoid crypto scams in Nigeria?
To avoid falling for cryptocurrency scams exposed in Nigeria, stay away from unregistered platforms, ignore “guaranteed ROI” offers, and always verify that a platform is SEC-licensed.
22. How can I invest in cryptocurrency legally in Nigeria?
You can invest in cryptocurrency legally in Nigeria by using licensed exchanges registered under the SEC, such as those operating in the regulatory sandbox or with provisional approval.
23. What changed in Nigeria’s crypto law in 2025?
The major shift came with the crypto policy updates in Nigeria 2025, where the Investment and Securities Act officially recognised crypto as a security and gave the SEC full oversight authority.
24. How is crypto regulated in Nigeria compared to other countries?
Thanks to the new legal framework for crypto in Nigeria, the country now aligns more closely with global standards, focusing on regulation, investor protection, and platform accountability.
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Omoare-Allen
Welcome to chartsempire.com! I'm Omoare Allen, your guide in the world of finance and beyond. As an accomplished financial markets author, analyst, speculator, investor and mentor, I bring a wealth of expertise to the table. From dissecting market trends to strategic investment, my insights aim to navigate the complexities of the financial landscape. Off the charts, you'll find me on the golf course perfecting my swing, cycling through scenic routes, and diving into captivating reads. I won't make decisions for you, but would rather teach you what works for me, and how you can properly implement trade management skills to help you become confident in your financial goals. Whether you're here to say hi or share vital information, my email box is open for connection. Feel free to reach out through the contact page. See you in the next one☺️ Submit enquiries for writing and guest posting on the 👉 contact us page.
