Which Crypto Exchanges Are Banned in Nigeria? 2025 Guide

Key Takeaways

• Only exchanges with a valid SEC license can operate openly in Nigeria.
• Binance is restricted from Naira‑based services but still usable via VPN for crypto‑to‑crypto trades.
• Unlicensed platforms are effectively prohibited and risk heavy penalties.
• Quidax and Busha are the two domestic exchanges that have secured licensing.
• Staying compliant means using licensed services and keeping records for tax reporting starting 2026.

Ever wondered which crypto platforms you can safely use in Nigeria today? The country’s regulatory scene shifted dramatically in 2025, moving from a blanket ban to a licensing‑based system. This guide walks you through the current list of prohibited or restricted exchanges, explains why they’re blocked, and shows you the approved options you can trust.

Nigeria is a fast‑growing crypto market, handling over $92billion worth of digital assets between July2024 and June2025. The government now regulates the space through the Investments and Securities Act (ISA 2025), which treats digital assets as securities and puts the Securities and Exchange Commission (SEC) in charge of licensing.

How the Licensing System Works

The SEC requires every crypto exchange or Virtual Asset Service Provider (VASP) to register, meet AML/KYC standards, and submit regular compliance reports. If an exchange fails to obtain a license, the SEC can suspend or revoke its operations, effectively banning it from the Nigerian market. The Nigeria Tax Administration Act (NTAA 2025) adds a financial punch: non‑compliant VASPs face an initial fine of ₦10million (≈$6,693) plus ₦1million per month of continued breach.

What’s Actually Banned?

In practice, the ban targets any platform that operates without SEC approval. The most visible case is Binance. In February2024 the exchange stopped Naira‑based peer‑to‑peer trades, and local ISPs blocked its domain. Users can still log in, move crypto between wallets, and trade non‑Naira pairs-but they must use a VPN to bypass the block. Because Binance hasn’t secured a Nigerian license, its Naira services remain prohibited.

Other international platforms-such as KuCoin, Coinbase, and Kraken-have not applied for a license. While they aren’t officially “banned,” they fall into the same prohibited category: Nigerian residents cannot legally deposit or withdraw Naira through them, and any attempt to do so risks regulatory action.

Licensed Exchanges You Can Use

The SEC has approved a handful of domestic platforms that meet all compliance checks. The two that have launched successfully are:

• Quidax - a home‑grown exchange offering Naira deposits, crypto trading, and fiat withdrawals.
• Busha - another locally licensed VASP that focuses on low‑fee crypto purchases via bank transfer.

Both platforms implement robust KYC verification, transaction monitoring, and report directly to the SEC. They also cooperate with the Central Bank of Nigeria (CBN), which now permits banks to service licensed crypto businesses.

Comparison Table: Banned vs. Licensed Exchanges

Staying on the Right Side of the Law

If you’re a trader, investor, or developer, here’s a quick checklist to avoid penalties:

1. Confirm the exchange appears on the SEC’s official licensed list.
2. Use only Naira‑enabled services that have a valid license.
3. Complete full KYC verification-photo ID, address proof, and source‑of‑funds documentation.
4. Keep transaction records for at least three years; you’ll need them when the NTAA 2025 tax regime kicks in (2026).
5. Avoid VPNs for accessing banned platforms; regulators view it as circumvention.

Following these steps not only protects you from fines but also helps build a trustworthy crypto ecosystem in the country.

Risks of Using Banned Platforms

Operating on a prohibited exchange can lead to:

• Financial loss if the platform is shut down and funds are frozen.
• Legal charges, including the ₦10million base penalty and monthly fines.
• Difficulty withdrawing crypto to a local bank, because banks can no longer process transactions linked to unlicensed VASPs.
• Potential inclusion on watchlists maintained by the EFCC and NFIU, which could affect future banking access.

Future Outlook

Regulators are still fine‑tuning the framework. The SEC plans to review more applications throughout 2025, and the NTAA 2025 will introduce a withholding tax on crypto trades starting 2026. Expect clearer guidance on DeFi protocols and stablecoins soon-once those rules are set, additional platforms may qualify for licensing.