When Nigeria cracked down on cryptocurrency exchanges in 2021, it felt like the end of an era. Banks blocked transactions, users scrambled to find workarounds, and global platforms like Binance pulled back. But by 2026, the story has completely flipped. Nigeria doesn’t ban crypto exchanges anymore - it licenses them. The real question isn’t which exchanges are banned, but which ones are legally allowed to operate.
There Are No Outright Bans - Just Unlicensed Platforms
Nigeria’s approach in 2026 isn’t about banning platforms. It’s about control. The Investments and Securities Act (ISA) 2025 a comprehensive law signed by President Bola Ahmed Tinubu in March 2025 that reclassifies digital assets as securities and mandates licensing for all crypto exchanges changed everything. Before this law, regulators slapped restrictions on exchanges without clear rules. Now, the Securities and Exchange Commission (SEC) Nigeria’s primary financial regulator responsible for licensing and overseeing crypto exchanges under ISA 2025 decides who gets to operate.If a crypto exchange doesn’t have an SEC license, it’s effectively banned. Not because the government shut it down with a decree, but because it can’t legally accept Naira deposits, process withdrawals, or market services to Nigerian users. The law gives the SEC power to freeze assets, shut down websites, and penalize non-compliant operators. So technically, there’s no list of banned exchanges - just a list of approved ones.
Who’s Licensed? Only Two So Far
As of early 2026, only two exchanges have fully cleared the SEC’s licensing process:- Quidax A Nigerian-based crypto exchange that received early SEC licensing under ISA 2025 and offers Naira trading, KYC, and AML compliance
- Busha Another Nigerian exchange granted SEC license in late 2024, known for fast Naira deposits and strong customer support
These platforms meet strict requirements: full Know Your Customer (KYC) checks, Anti-Money Laundering (AML) monitoring, real-time transaction reporting, and secure custody of customer funds. They’re also required to submit quarterly reports to the SEC and maintain reserves to cover potential client losses.
Other Nigerian platforms like Luno, PalmPay Crypto, and NairaEx applied for licenses but are still under review. Some international platforms tried to register but withdrew after realizing how deep the compliance burden runs. The licensing process takes 6 to 12 months, and many smaller exchanges simply can’t afford the legal and technical costs.
Binance: Not Banned - Just Restricted
Binance is the most talked-about name in Nigerian crypto. In February 2024, it stopped Naira trading on its peer-to-peer platform. Telecom providers blocked access to binance.com. But here’s what most people miss: Binance was never officially banned.Nigerians can still log into their Binance accounts. They can still send and receive Bitcoin, Ethereum, and other cryptocurrencies. They can still trade crypto-for-crypto. The only thing blocked is direct Naira deposits and withdrawals. That’s a huge limitation, but not a total shutdown.
Many users still access Binance through VPNs. Some even use Binance’s international app, not the Nigerian-specific site. The SEC doesn’t go after individual users - it targets the exchange. So while Binance can’t legally serve Nigerian customers with Naira, it hasn’t been shut down. It’s in a gray zone: technically restricted, but still usable.
Why the Shift? Nigeria’s Crypto Market Is Too Big to Ignore
Between July 2024 and June 2025, Nigeria received over $92.1 billion in cryptocurrency value. That’s more than any other African country - double South Africa’s volume. No government could sustain a ban on that scale.The Central Bank of Nigeria (CBN) had banned banks from serving crypto firms in 2021. But by late 2023, the new CBN governor reversed that. Banks started reopening accounts for licensed exchanges. Why? Because Nigerians were already using crypto. The economy was already moving. The question became: Do we fight it, or regulate it?
The ISA 2025 answer was clear: regulate it. The law doesn’t just cover exchanges. It also applies to NFT marketplaces, online forex trading platforms, and even some DeFi protocols. The goal? Stop fraud, protect users, and bring crypto into the formal financial system.
The Hidden Cost: Compliance Is Expensive
Getting licensed sounds great - until you see what it takes. Exchanges need:- A physical office in Nigeria
- Local legal counsel and compliance officers
- Real-time transaction monitoring software
- Bank partnerships for Naira on/off ramps
- Monthly reporting to the SEC and NFIU
The cost? At least $500,000 in setup fees and annual compliance costs. That’s why only two local players made it so far. International exchanges like Kraken, Coinbase, and KuCoin haven’t applied. They don’t see the Nigerian market as worth the investment - not yet.
The Tax Hammer: NTAA 2025 Is Coming
In June 2025, Nigeria passed the Nigeria Tax Administration Act (NTAA) 2025 a law requiring crypto exchanges to report all user transactions and withhold taxes on capital gains, effective January 2026. Starting in 2026, exchanges must:- Track every crypto-to-Naira trade
- Calculate capital gains for each user
- Withhold 10% tax on profits
- Submit reports to the Federal Inland Revenue Service (FIRS)
Failure? A fine of ₦10 million ($6,693) in the first month, plus ₦1 million ($669) every month after. That’s not a warning - it’s a financial trap for unprepared platforms.
What About Other Exchanges? Are They Illegal?
Exchanges like Bybit, OKX, Huobi, and Bitget are still accessible to Nigerians. Many users use them daily. But here’s the catch: they’re operating illegally. If the SEC decides to crack down, these platforms could be blocked at the network level, and Nigerian users could face trouble if they’re found to be using them for large-scale trading or money laundering.There’s no public list of unlicensed exchanges. But if a platform doesn’t appear on the SEC’s official list of licensed VASPs (Virtual Asset Service Providers), it’s not legal. And the SEC is actively monitoring traffic patterns and reporting suspicious activity to the EFCC (Economic and Financial Crimes Commission).
What Should Users Do?
If you’re in Nigeria and want to trade crypto in 2026, here’s what works:- Use Quidax or Busha - they’re safe, legal, and have customer support.
- If you use Binance or other international platforms, understand you’re in a gray zone. Don’t deposit large Naira amounts - stick to crypto-to-crypto trades.
- Never use unlicensed platforms for large transactions. You have no legal protection if something goes wrong.
- Keep records of all trades. The tax authorities are watching.
There’s no way around the fact that Nigeria’s crypto scene is now tightly regulated. But that doesn’t mean it’s dead. It means it’s maturing. The exchanges that survive are the ones that play by the rules - and the users who win are the ones who know the difference between a restricted platform and a banned one.
Are crypto exchanges completely banned in Nigeria?
No. Nigeria doesn’t ban crypto exchanges outright. Instead, it requires all exchanges to get licensed by the Securities and Exchange Commission (SEC). Unlicensed exchanges are effectively banned because they can’t legally accept Naira deposits or operate within the country. Only Quidax and Busha have received full licenses as of early 2026.
Is Binance banned in Nigeria?
Binance is not officially banned, but it’s restricted. In 2024, Binance stopped Naira trading and Nigeria’s telecom providers blocked access to its website. Nigerians can still use Binance for crypto-to-crypto trades, but they can’t deposit or withdraw Naira directly. Access often requires a VPN, which puts users in a legal gray area. The SEC has not issued a formal ban, but Binance is not licensed to operate in Nigeria.
Which crypto exchanges are legal in Nigeria in 2026?
As of early 2026, only two exchanges are fully licensed by Nigeria’s SEC: Quidax and Busha. These platforms comply with strict KYC, AML, and reporting rules. Other exchanges, including international ones like Kraken or Coinbase, have not applied for or received licenses and are not legally permitted to offer Naira trading services.
Can I still use Binance or other international exchanges?
Yes, technically - but not legally. Many Nigerians still use Binance, Bybit, OKX, and similar platforms for crypto-to-crypto trading. However, since these platforms aren’t licensed, using them for large transactions or Naira deposits puts you at risk. The SEC can block access, and the tax authorities may flag your activity under NTAA 2025. Use them at your own risk.
What happens if I use an unlicensed exchange?
If you’re an individual user, you’re unlikely to face direct penalties. The SEC targets the exchange operators, not retail users. However, if you’re trading large amounts, the Federal Inland Revenue Service (FIRS) may audit your transactions under NTAA 2025. You could owe back taxes or face penalties. Also, if the platform gets shut down, you might lose access to your funds with no recourse.
Why did Nigeria change its crypto rules?
Nigeria’s crypto market exploded. Between July 2024 and June 2025, over $92 billion in cryptocurrency flowed into the country. The government realized it couldn’t stop it - so it decided to regulate it. The ISA 2025 law was created to protect users, prevent fraud, stop money laundering, and bring crypto into the formal economy. It’s a shift from fear to control.
Will more exchanges get licensed in 2026?
Possibly. The SEC is reviewing several applications from both Nigerian and international firms. But the bar is high: licensing requires millions in compliance spending, local infrastructure, and ongoing reporting. Only exchanges with serious resources are likely to succeed. Expect more licenses by late 2026, but don’t count on major global platforms like Coinbase entering soon.
What’s Next?
The future of crypto in Nigeria isn’t about bans anymore. It’s about who can afford to play by the rules. The SEC’s licensing system is still new, and enforcement is uneven. But one thing’s clear: if you want to trade crypto legally in Nigeria, you need to use a licensed exchange. Everything else is a gamble.For users, the choice is simple: safety and legality - or convenience and risk. For the country, the bet is that regulation will turn crypto from a shadow economy into a driver of innovation. So far, it’s working - but only for those who follow the new game.
