Which Crypto Exchanges Are Banned in Nigeria? 2025 Guide

Which Crypto Exchanges Are Banned in Nigeria? 2025 Guide
Michael James 9 December 2024 20 Comments

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Enter the name of a cryptocurrency exchange to see if it's licensed or banned in Nigeria according to 2025 regulations.

Licensed Exchanges in Nigeria (2025)

Quidax
Licensed

Naira deposits, crypto trading, and fiat withdrawals available.

Bushi
Licensed

Low-fee crypto purchases via bank transfer.

Banned/Restricted Exchanges in Nigeria (2025)

Binance
Restricted

Naira services blocked; only crypto-to-crypto trades allowed via VPN.

KuCoin
Banned

No license; blocked by ISPs; VPN required for access.

Coinbase
Banned

No Nigerian license; Naira transactions prohibited.

Kraken
Banned

No local licensing; access requires VPN (not recommended).

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.

Contrast of a person blocked from Binance with VPN and another using Quidax with SEC badge.

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

Status of Major Crypto Exchanges in Nigeria (2025)
Exchange Status Reason / Requirement Access Method
Binance Restricted No SEC license for Naira services VPN for crypto‑to‑crypto only
KuCoin Banned (unlicensed) Never applied for Nigerian license Blocked by ISPs; VPN required
Coinbase Banned (unlicensed) Lacks SEC approval VPN needed; risky
Kraken Banned (unlicensed) No local licensing VPN needed; not recommended
Quidax Licensed SEC approved, AML/KYC compliant Direct access via website/app
Busha Licensed SEC approved, meets CBN guidelines Direct access via website/app

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.

Group of Nigerians holding crypto symbols under sunrise, symbolizing compliant future.

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.

Frequently Asked Questions

Is Binance completely banned in Nigeria?

No. Binance can still be used for crypto‑to‑crypto trades, but its Naira‑based services are restricted because it lacks an SEC license. Access usually requires a VPN.

Can I use an international exchange if I convert crypto to USDT first?

Technically you can, but the transaction still counts as using an unlicensed VASP. If the platform does not have a Nigerian license, you risk regulatory action.

What are the penalties for operating on a banned exchange?

The NTAA 2025 sets a starting fine of ₦10million (about $6,693) for the first month of non‑compliance, plus ₦1million for each additional month.

How do I verify if an exchange is licensed?

Check the SEC’s official list of approved VASPs on its website. Licensed exchanges display their registration number and compliance badge.

Will my crypto holdings be safe if I switch to a licensed exchange?

Licensed exchanges must hold adequate capital reserves and follow AML/KYC standards, so your assets are better protected compared to unregulated platforms.

20 Comments

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    Ali Korkor

    October 10, 2025 AT 14:06
    This is actually super helpful! I've been trying to figure out what's safe to use in Nigeria and this breaks it down real simple. Licensed = good, unlicensed = risky. Done and done.
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    madhu belavadi

    October 11, 2025 AT 11:02
    I don't care what the government says. I've been using Binance since 2021 and my portfolio tripled. They can ban all they want, the market doesn't care about paperwork.
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    Dick Lane

    October 11, 2025 AT 23:21
    I appreciate how clear this is. A lot of people are scared to even touch crypto now but if you stick to Quidax or Busha you're golden. No need to overcomplicate it.
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    Norman Woo

    October 12, 2025 AT 00:51
    theyre all controlled by the fed anyway... even the licensed ones... quidax? busha? just new front doors for the same prison... the cbc is just a puppet... you think you're safe but you're just being tracked better... i use monero now... no one can see me... ever...
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    Serena Dean

    October 12, 2025 AT 20:42
    Love that they're finally regulating this space properly! Licensed exchanges mean real protection for everyday users. Also huge props to Quidax and Busha for stepping up and doing the work to get licensed. Nigeria’s crypto future looks bright now!
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    James Young

    October 13, 2025 AT 04:48
    You call this a guide? This is basic info anyone with half a brain could Google. Binance got banned because they refused to hand over user data to the Nigerian state. That’s not regulation, that’s authoritarian control. And you’re celebrating it? Pathetic.
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    Chloe Jobson

    October 13, 2025 AT 08:16
    VASP compliance = institutional legitimacy. The SEC’s framework aligns with FATF recommendations. This is foundational for global interoperability. Also, NTAA 2025 tax reporting is non-negotiable for any serious participant.
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    Andrew Morgan

    October 13, 2025 AT 12:57
    man i just wanted to buy some btc without jumping through hoops... now i gotta do full kyc and keep receipts for 3 years? this feels like banking with a side of therapy... but hey... if it keeps my coins safe i guess i'll play along
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    Michael Folorunsho

    October 14, 2025 AT 10:23
    Nigeria thinks it’s the center of the crypto world? Please. These licensed exchanges are local puppets. Real crypto happens on decentralized, borderless platforms. If you’re using Quidax, you’re not a crypto investor-you’re a taxpayer with a wallet.
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    Roxanne Maxwell

    October 14, 2025 AT 12:44
    This is actually really thoughtful. I know so many people who were scared to even look at crypto because they didn’t know what was legal. This gives them a real path forward. Thank you for writing this.
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    Jonathan Tanguay

    October 14, 2025 AT 19:02
    You missed the biggest point-this whole licensing thing is just a distraction. The real issue is that the Nigerian government doesn’t understand blockchain. They’re treating crypto like stocks when it’s decentralized by design. You can’t regulate what doesn’t have a CEO. The SEC is just playing dress-up with power. And now you want people to file tax reports? On what? Transactions that are pseudonymous? This is a joke wrapped in a regulatory bow and sold as progress. Also you forgot to mention that Busha’s KYC is so strict it takes 72 hours just to verify your selfie. That’s not security, that’s a bureaucratic nightmare.
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    Ayanda Ndoni

    October 15, 2025 AT 10:34
    so u saying i gotta use quidax? but they charge like 5% fee? and i just wanna swap eth to usdt fast? why do i have to be a good citizen when i can just use binance with vpn? this is so annoying
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    Elliott Algarin

    October 15, 2025 AT 14:38
    It’s funny how we think regulation is the enemy of freedom. But without it, the system just becomes a free-for-all where the strongest take everything. Maybe this is the first step toward something more sustainable. Not perfect, but better than chaos.
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    John Murphy

    October 15, 2025 AT 18:49
    i’ve been using busha for a few months now and honestly it’s been smooth. no drama no delays. the kyc was a pain but once it was done i forgot it existed. still kinda weird that i have to send my passport to a local app but... i guess that’s the price of safety now
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    Zach Crandall

    October 16, 2025 AT 14:57
    The notion that a domestic exchange can be truly independent under CBN oversight is naive. Financial sovereignty cannot be granted by a central bank-it must be claimed. This licensing regime is a soft coup disguised as reform.
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    Akinyemi Akindele Winner

    October 17, 2025 AT 02:07
    Naija people be like ‘oh no the government banned binance’ but we all know the real problem is the naira devaluating faster than your crypto portfolio. If you’re not using a vpn you’re not trying. Quidax? Busha? Those are for grandma’s savings account. I use p2p with cash in hand-no forms, no trace, no taxes. Nigeria still runs on hustle.
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    Patrick De Leon

    October 17, 2025 AT 13:36
    This is a textbook example of regulatory capture. Local players get licenses because they’re politically connected. Foreign ones are blocked not because they’re unsafe but because they won’t pay bribes. The SEC is just another revenue stream for the elite. Don’t be fooled.
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    MANGESH NEEL

    October 17, 2025 AT 16:12
    You think this is about compliance? This is about control. The government doesn’t want you to have money outside their system. They’re scared of decentralized finance because it removes their power to tax, track, and manipulate. The fines? They’re not penalties-they’re extortion. And you’re all just nodding along like good little taxpayers.
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    Petrina Baldwin

    October 17, 2025 AT 22:41
    Use Quidax. Done.
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    Sean Huang

    October 18, 2025 AT 19:18
    The SEC is a tool of the deep state... they want to track every transaction... every wallet... every move... this isn’t regulation... it’s surveillance with a license... and you people are happy? you’re handing over your financial soul for the illusion of safety... the blockchain was meant to be free... now it’s just another bank with a different name... and they’re watching... always watching... 👁️

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