Crypto Exchange Requirements Nigeria: What You Need to Know in 2025

When it comes to running or using a crypto exchange, a platform that lets users buy, sell, and trade digital currencies. Also known as digital asset exchange, it must follow local laws to operate legally in Nigeria. The rules aren’t optional—they’re enforced by the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). In 2025, any crypto exchange serving Nigerian users must be registered as a Virtual Asset Service Provider (VASP), a licensed entity that handles cryptocurrency transactions under official oversight. This isn’t just paperwork. It means proof of capital, anti-money laundering systems, customer identity checks, and regular audits.

Most global exchanges like Binance or Coinbase don’t have Nigerian VASP licenses, so they’re blocked from direct local transactions. That’s why Nigerian users often turn to licensed local platforms like Paxful, a peer-to-peer crypto marketplace registered with Nigeria’s SEC. Even then, users must link their bank accounts to verified IDs. The government tracks every transaction over ₦500,000. If you’re building a crypto business here, you need a physical office in Nigeria, local directors, and a compliance officer who understands both crypto and Nigerian financial law. No offshore setup will cut it.

What about users? If you’re trading crypto in Nigeria, you’re not breaking the law—but you’re taking risks if you use unlicensed platforms. The SEC has shut down over 12 unregistered exchanges since 2023. Some users lost thousands because withdrawals got frozen or the platform vanished. That’s why licensed exchanges matter: they’re required to keep funds in segregated accounts and report suspicious activity. You also need to know your tax obligations. Crypto gains are taxable in Nigeria, and the Federal Inland Revenue Service (FIRS) now cross-checks exchange data with bank records.

There’s no magic workaround. Trying to bypass rules with VPNs or foreign wallets doesn’t protect you—it just makes recovery harder if something goes wrong. The best path is clear: use only SEC-registered platforms, keep records of every trade, and understand that crypto here isn’t a free-for-all. It’s a regulated space, and the rules are getting tighter. What follows are real reviews, warnings, and breakdowns of exchanges that either made it through Nigeria’s system… or got crushed by it.