What Crypto Exchanges Are Banned in Nigeria in 2025

Nigeria doesn’t have a list of banned crypto exchanges like a blacklist you can print out. Instead, it has a licensing system-and if you’re not licensed, you’re effectively banned. That’s the reality as of 2025. The country moved away from outright prohibition and now operates under the Investments and Securities Act (ISA) 2025, which gives the Securities and Exchange Commission (SEC) the power to approve or shut down crypto platforms. So, the question isn’t ‘which exchanges are banned?’-it’s ‘which ones are allowed?’

There Are No Official Bans, Only Unlicensed Exchanges

You won’t find a government document saying ‘Binance is banned.’ But you’ll find that Binance can’t process Naira deposits or withdrawals anymore. In February 2024, the platform stopped Naira trading on its peer-to-peer service. Nigerian telecom providers started blocking access to Binance’s website. That doesn’t mean you can’t use it. You still can. You can log in, send Bitcoin to your wallet, or trade BTC for ETH. But if you want to buy crypto with Naira or cash out to your bank account, you’re blocked. That’s not a ban-it’s a restriction. And it’s the same for most international exchanges that haven’t applied for or received a Nigerian license.

Only Two Exchanges Are Officially Licensed (As of 2025)

Right now, only two crypto exchanges have the green light from Nigeria’s SEC: Quidax and Busha. These are Nigerian-based platforms that went through a long, strict licensing process. They had to prove they could handle KYC checks, anti-money laundering controls, transaction monitoring, and customer dispute resolution. They also had to show they had enough financial backing and technical infrastructure to meet regulatory standards.

These two platforms are now the only ones legally allowed to offer Naira-to-crypto trading. That means if you want to buy Bitcoin with your Nigerian bank account without using a VPN or third-party middleman, Quidax and Busha are your only two legal options. They’ve built customer service teams, local support lines, and even mobile apps designed for Nigerian users. Many users report faster withdrawals and better help than they got from international platforms.

Binance Is Not Banned-It’s Just Not Licensed

Binance is the biggest name people think of when they ask about bans. But here’s the truth: Binance still operates in Nigeria. Nigerian users still hold Binance accounts. They still trade crypto-to-crypto. They still withdraw Bitcoin or Ethereum to external wallets. What they can’t do is deposit Naira directly or withdraw to a Nigerian bank. The platform’s domain is blocked by local ISPs, so most users need a VPN to access it. But the SEC hasn’t ordered Binance to shut down completely. It just hasn’t approved it.

That’s the difference between a ban and non-compliance. Binance hasn’t applied for a license, or if it did, it hasn’t passed the SEC’s review. Until it does, it won’t be allowed to handle Naira. But it’s not illegal to use. Many Nigerians still do-especially those who trade crypto as an asset class rather than a currency.

Why the Shift from Ban to Licensing?

Back in 2021, the Central Bank of Nigeria (CBN) told banks to stop serving crypto businesses. That led to chaos. People used P2P platforms, foreign wallets, and informal networks to keep trading. By 2023, the CBN reversed course. It realized that banning crypto didn’t stop it-it just drove it underground. Nigeria was already one of the world’s top crypto markets, with over $92 billion in crypto value flowing in between July 2024 and June 2025. That’s more than South Africa, Ghana, and Kenya combined.

The government realized it couldn’t stop the tide. So it decided to regulate it. The ISA 2025 made digital assets legally recognized as securities. It gave the SEC authority to license platforms, fine non-compliant ones, and even access telecom data to track fraud. It also created new tax rules under the Nigeria Tax Administration Act (NTAA) 2025, which kicks in 2026. Unlicensed VASPs (Virtual Asset Service Providers) could face fines of ₦10 million ($6,693) in the first month of violation, plus ₦1 million ($669) every month after.

What Happens to Unlicensed Exchanges?

If an exchange isn’t licensed, the SEC doesn’t need to issue a public ban. They just cut off its access. Banks can’t process payments to or from unlicensed platforms. Telecom companies block their domains. Payment processors refuse to work with them. That’s how enforcement works now-indirect, but effective.

Many smaller international exchanges that never bothered applying for a Nigerian license are now invisible to the average Nigerian user. You won’t find them on Google searches. You won’t see ads for them on social media. They’re not listed on local crypto forums anymore. The market has cleaned itself up. Only licensed players can advertise. Only licensed players can partner with Nigerian fintechs. Only licensed players can get payment integration with local banks.

Workarounds Still Exist-But They’re Risky

Some users still use VPNs to access Binance, Kraken, or Coinbase. Some use P2P platforms like Paxful or LocalBitcoins to trade with individuals. Others use crypto-friendly banks in neighboring countries. But these methods aren’t protected by law. If you’re scammed on an unlicensed platform, there’s no regulator to turn to. No customer support line. No legal recourse. The SEC doesn’t investigate fraud on unlicensed platforms.

Licensed exchanges like Quidax and Busha, on the other hand, are required to have dispute resolution systems. If your deposit doesn’t show up, they must investigate. If your account gets hacked, they must have insurance or compensation plans. That’s the real value of licensing-it’s not about control. It’s about safety.

The Future: More Licensed Exchanges Coming

The SEC is reviewing dozens of license applications. Several international exchanges, including some from the U.S. and Europe, are reportedly preparing to apply. The licensing process takes 6 to 12 months. It’s expensive. It’s complex. But the payoff is big: access to Nigeria’s 200+ million people and one of the fastest-growing crypto markets in the world.

Experts predict at least five more licensed exchanges will be approved by the end of 2026. Some may be local startups. Others could be global platforms that decide it’s worth the cost to play by Nigerian rules. The market is moving toward legitimacy. The days of shady, offshore exchanges operating in the shadows are ending.

What Should Nigerian Crypto Users Do?

If you want to trade crypto legally and safely in Nigeria, stick to Quidax and Busha. They’re the only two with SEC approval. If you want to use Binance or another international platform, understand the risks: no Naira deposits, no bank withdrawals, no legal protection, and potential domain blocking. Use a VPN if you must-but know you’re operating outside the law.

Don’t assume that because a platform is popular, it’s safe. Don’t trust forums or Telegram groups that recommend ‘the best exchange.’ Only trust what’s listed on the SEC’s official website. And remember: if it’s not licensed, it’s not protected.

What’s Next for Nigeria’s Crypto Market?

The next big changes will come with the NTAA 2025 tax rules, which will require exchanges to report user transactions and withhold taxes. That means even licensed platforms will need to upgrade their systems. DeFi protocols, stablecoins, and NFTs are also on the SEC’s radar. More rules are coming. But the direction is clear: Nigeria isn’t turning away from crypto. It’s bringing it into the light.

The country is betting that regulation will attract investment, not scare it away. And so far, the numbers prove it’s working. Nigeria didn’t ban crypto. It outgrew the need to.