- In 2023, Nigerians traded over $54 billion worth of cryptocurrency assets, making Nigeria the second most active country globally in crypto transactions.
- Since 2015, at least eight different regulations have attempted to guide crypto activity in Nigeria.
- Over time, regulatory stances have shifted from skepticism to cautious acceptance, with the most recent law, the ISA 2025, supporting crypto trading and registration of crypto businesses.
The Rise of Cryptocurrency in Nigeria
Cryptocurrencies, i.e, digital assets that operate independently of central banks through decentralized systems, have existed globally for over a decade.
However, their adoption gained massive popularity in Nigeria around 2015, largely due to inflation. As the naira depreciated, many Nigerians began looking for alternative ways to hedge their savings and investments.
Nigeria’s crypto adoption also accelerated around 2017–2020, especially due to growing tech awareness.
But as crypto adoption soared, so did regulatory concerns.
Key Concerns From Nigerian Regulators
- Lack of oversight. Crypto’s decentralized nature made it difficult for regulators to monitor.
- Pressure on the naira. High-volume crypto trades threatened to destabilize Nigeria’s monetary system.
- Fraud and Ponzi schemes. The anonymity of digital wallets made it easier for bad actors to scam users.
These concerns prompted multiple circulars from regulators, some in support of crypto innovation, others strongly warning against it.
That’s why many Nigerians still wonder: “Is cryptocurrency legal in Nigeria?”
The short answer is:
Yes, cryptocurrency is legal in Nigeria, and crypto businesses can now be registered according to statutory regulations.
Cryptocurrency Regulations Leading to Its Acceptance in Nigeria
Since 2015, Nigerian regulatory bodies have grappled with how to control a decentralized market offering high yields with little to no entry barriers.
Below is a timeline of key crypto-related regulatory actions
- 2017: CBN issues its first warning, advising banks and users to exercise caution with crypto.
- 2018: SEC flags cryptocurrencies and ICOs as high-risk.
- 2021: CBN bans banks from dealing with crypto transactions altogether.
- 2022: SEC introduces digital asset rules, recognizing cryptos as securities and setting the groundwork for licensing.
- December 2023: CBN lifts the ban on banks dealing with crypto but only for platforms licensed by the SEC.
Despite these shifts, crypto was never explicitly legalized until 2025, leaving uncertainties in businesses, investors, and the citizenry.
The Game-Changer: Investments and Securities Act (ISA) 2025
Concerns over exploitation, the realization of increased cryptocurrency trading, and opportunities for the nation to benefit from the crypto appetite of citizens have led to the Investments and Securities Act 2025.
The ISA 2025 is Nigeria’s most recent cryptocurrency regulation, placing digital assets under formal securities law and enabling regulated participation in the crypto economy.
Key Provisions of the ISA Law
- Classifies crypto assets as securities, putting them under the SEC’s direct jurisdiction.
- Empowers the SEC to license, regulate, and supervise crypto-related exchanges, custodians, token issuers, and Virtual Asset Service Providers (VASPs).
- Introduces strict compliance, including capital requirements, KYC/AML policies, and risk management.
- Toughens penalties for crypto-related fraud and Ponzi schemes.
Why ISA 2025 Is a Turning Point
- Legal Recognition. Cryptocurrency is now recognized as a legitimate financial asset under Nigerian law.
- Regulatory Clarity. The law consolidates SEC authority, removing uncertainty.
- Investor Protection. It provides safeguards, enforces accountability, and ensures transparency.
For the first time, Nigerians have clear legal permission to participate in the crypto economy.
Cryptocurrency Regulation in Nigeria has sought protection for the citizenry.
The issue has never been whether Nigerians should use crypto; it’s whether they can do so safely.
Between 2020 and 2023, crypto trading was tied to several national security and fraud concerns:
- Terror Financing, From 2021 to 2022, the Nigerian Financial Intelligence Unit (NFIU) raised alarms about crypto’s use in terrorism financing, as it allowed users to evade traditional surveillance systems.
- Ponzi Schemes. Platforms like Patricia, Racksterli, Chinmark, and InksNation lured in investors and eventually crashed—many victims lost life savings.
- Money Laundering via Platforms like Binance. Lax KYC practices allowed illicit funds to flow through Nigerian crypto wallets. Despite CBN crackdowns, trade volumes surged.
These threats prompted initial prohibitions against cryptocurrency.
Trade volumes, however, soared with Nigeria holding the highest peer-to-peer (P2P) crypto trade levels globally.
This growing participation underscored the urgent need for a formal regulatory framework to protect investors, ensure compliance, and curb misuse.
Do I Need a License to Trade Crypto in Nigeria?
If you run a crypto-related business, whether an exchange, wallet, or token project, you are required by law to be licensed by the SEC under ISA 2025.
Covered Entities Include:
- Virtual Asset Service Providers (VASPs). Businesses enabling people to buy, sell, or transfer digital assets.
- Crypto Exchanges & Trading Platforms. Online platforms where users trade crypto for fiat (like naira) or other digital assets.
- Token Issuers & ICO Projects Startups raising funds through Initial Coin Offerings (ICOs) or similar methods.
- Wallet & Custody Providers. Services offering secure storage and access to digital assets.
- DeFi Platforms. Decentralized platforms offering investment-like services such as staking, lending, and liquidity pools.
Licensing Requirements for Crypto Businesses
To operate legally in Nigeria’s crypto space, businesses must fulfill the following:
- Incorporation in Nigeria or registration of foreign entities.
- Fulfillment of minimum capital requirements (set by the SEC).
- Submission of:
- AML/CFT compliance frameworks
- KYC protocols
- Risk management systems
- Audited financial statements
- Payment of application and licensing fees
Why Now Is the Time to Register Your Crypto Business
Nigeria’s youthful, tech-savvy population and rising digital adoption make it one of Africa’s most promising crypto markets.
The government’s regulatory shift signals support for crypto entrepreneurship and the inevitability of digital assets in our financial future.
Looking to register or structure your crypto business in line with ISA 2025?
Get Legal Support with Centil Attorney
At Centil Attorney, we bring over 15 years of legal expertise from 7 main practice areas and 61 resolved cases.
To date, our pride remains staying ahead of evolving tech regulations like cryptocurrency law in Nigeria.
From registration and compliance to risk advisory and investor protection, we’ll help you build your crypto venture on a solid legal foundation.
The crypto landscape is evolving, but our services are solution-driven to provide certainty in no time.
Book a quick consultation today.
Enjoy ease in your cryptocurrency business registration in Nigeria today.