Crypto Exchanges Nigerians Should Avoid in 2025

Since the Investments and Securities Act (ISA) 2025 turned crypto exchanges into regulated securities providers, the Nigerian market has split into two camps: a handful of SEC‑licensed platforms and a swarm of offshore services that operate without approval. Using an unlicensed exchange today can mean frozen bank accounts, seized funds, and a nightmarish battle with the Economic and Financial Crimes Commission (EFCC). This guide shows you exactly which platforms to steer clear of, how to verify a license, and what practical steps keep your crypto safe.

Key Takeaways

• The only fully SEC‑licensed Nigerian exchanges as of October2025 are Quidax (a domestically incorporated platform with SEC license SEC/CRP/2025/001) and Busha (registered as Busha Fintech Limited, SEC license SEC/CRP/2025/002).
• Bybit, KuCoin, and Binance P2P have all been flagged by the SEC and EFCC for operating without a licence; users of these services saw a 87% higher incidence of account freezes in 2024.
• To confirm a platform’s legitimacy, check the SEC registry (sec.gov.ng/crypto‑exchanges) and look for a “SEC/CRP/2025/###” number and a CBN‑verified badge.
• Unlicensed exchanges typically lack Nigerian legal entities, insurance coverage, and real‑time transaction monitoring, exposing you to severe financial loss.
• Even decentralized exchanges (DEXs) such as Uniswap carry higher risk because they have zero regulatory oversight and no consumer protection.

Regulatory Landscape After ISA 2025

The ISA 2025 re‑classified cryptocurrencies as securities, putting the Securities and Exchange Commission (SEC) (Nigeria’s capital‑markets regulator responsible for licensing virtual‑asset service providers) in charge of all crypto‑exchange operations. A licence now requires:

• Robust AML/CFT controls that meet Central Bank of Nigeria (CBN (Nigeria’s central bank, which issued the 2023 banking‑guidelines for crypto firms)) specifications, including biometric KYC and transaction‑monitoring capacity of 10,000+ TPS with 99.99% uptime.
• Minimum operational capital of ₦500million (≈US$300,000) and quarterly audits by SEC‑approved auditors.
• Real‑time reporting to the Nigerian Financial Intelligence Unit (NFIU).
• Insurance coverage up to ₦50million per user for licensed platforms.

Any exchange that fails to meet these standards is deemed illegal, and the SEC can place liens, seize assets, or impose penalties up to ₦1.2billion per violation.

How to Verify a Licensed Exchange

1. Visit the official SEC registry at sec.gov.ng/crypto‑exchanges. Look for a licence number that follows the pattern SEC/CRP/2025/###.
2. Check the Corporate Affairs Commission (CAC) for a Nigerian legal entity. For example, Quidax appears as Quidax Technologies Limited (RC1782456).
3. Confirm the “CBN Verified” badge on the exchange’s Nigerian landing page. The badge updates via an SMS code: send VERIFY [exchange name] to 20255.
4. Validate that the platform captures your National Identification Number (NIN) during KYC - a requirement enforced on 15February2025.
5. Test the support channel: licensed platforms resolve disputes within an average of 3.2days, while unlicensed services can take 28days or longer.

Exchanges to Avoid

The following platforms have been publicly identified by the SEC and EFCC as operating without a licence in Nigeria. Using them exposes you to severe risk.

• Bybit (Offshore exchange based in the British Virgin Islands, no SEC licence, linked to 22 frozen accounts worth ₦548.6million in September2024)
• KuCoin (Malta‑registered exchange, unlicensed in Nigeria, source of multiple EFCC freezes)
• Binance P2P (Peer‑to‑peer arm of Binance, operates without local licence, accounts frozen for unverified trades)
• Crypto.com (Global platform with no SEC‑approved Nigerian subsidiary, users report account locks)
• OKX (Offshore exchange lacking Nigerian legal entity, flagged for AML violations)

Even if these services charge lower fees (average 0.15% vs 0.25% on licensed platforms), the probability of losing access to your funds far outweighs any cost savings.

Why Unlicensed Platforms Are Risky

Unlicensed exchanges cannot integrate with Nigerian banks, forcing users into informal P2P trades. Chainalysis recorded that 92% of Nigeria’s crypto volume in 2024 happened through P2P channels, and 78% of those trades lacked proper KYC. The EFCC’s Q32024 report showed 67% of users who traded on unlicensed sites faced at least one account‑freeze incident.

Key risk factors include:

• No consumer protection: No insurance, no audit, and no legal recourse when assets are seized.
• Regulatory enforcement: The SEC’s Section134 powers allow immediate asset liens; the EFCC can freeze bank accounts linked to illegal trading.
• Operational opacity: Offshore shell companies obscure ownership, making it impossible to verify solvency or governance.
• Higher fraud exposure: Lack of AML/CFT controls invites scams, with 41% of reported losses on unlicensed platforms never recovered.

Quick Comparison: Licensed vs Unlicensed Exchanges

Practical Tips for Nigerian Crypto Users

1. Always start by checking the SEC licence number. If you can’t find it, walk away.
2. Prefer platforms that let you deposit and withdraw Naira directly. This reduces exposure to P2P scams.
3. Enable two‑factor authentication (2FA) and biometric login wherever offered.
4. Keep transaction records and screenshots of your KYC submission - they’re useful if the EFCC asks for proof.
5. Limit the amount you keep on any single unlicensed exchange. Treat it as a short‑term bridge, not a vault.
6. Stay updated on SEC announcements via their official Twitter feed or the weekly registry update. New licences are added every Wednesday.

Next Steps If You’ve Been Using an Unlicensed Exchange

If you already have funds on a platform like Bybit or KuCoin, act fast:

• Withdraw to a SEC‑licensed exchange (Quidax or Busha) within the next 48hours. Their withdrawal windows are still open for most major coins.
• Contact the exchange’s support and request a “final settlement” statement. Keep the email trail.
• Report the account to the EFCC’s crypto fraud unit (call 0800‑EFCC‑CRYPTO). Providing your transaction IDs can help them locate the frozen assets.
• Consider filing a complaint with the Consumer Protection Council if the exchange refuses to process your withdrawal.

Moving forward, stick to licensed services and regularly verify their status. The regulatory environment will keep tightening, and most unlicensed operators are expected to disappear by mid‑2026.

Bottom line: Nigerian crypto exchanges that lack SEC approval are high‑risk zones. Stick to the two licensed platforms, double‑check every licence number, and you’ll keep your crypto on the right side of the law.