What Crypto Exchanges Are Banned in Nigeria in 2025?

Nigeria doesn’t have a blanket ban on crypto exchanges anymore. That’s the first thing you need to understand. If you’re looking for a list of banned platforms like it’s 2021, you’ll be disappointed. The rules changed. In March 2025, President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA 2025), which didn’t outlaw exchanges-it gave them a license to operate. Now, it’s not about which exchanges are banned. It’s about which ones are licensed.

There Are No Official Bans-Only Unlicensed Exchanges

The Securities and Exchange Commission (SEC) of Nigeria is now the gatekeeper. Any crypto exchange that wants to serve Nigerian users must apply for a license. No license? You’re not allowed to offer Naira deposits, withdrawals, or local customer support. That’s the law. But it doesn’t mean you can’t access the platform at all.

Take Binance. In February 2024, the Nigerian government blocked access to its website through local ISPs. Naira trading on its peer-to-peer platform was suspended. But here’s the catch: Nigerian users still hold Binance accounts. They still send and receive Bitcoin, Ethereum, and other cryptos. They just can’t deposit or withdraw Naira directly. To get around the block, many use VPNs. The government doesn’t arrest them for that. They just don’t protect them if something goes wrong.

So Binance isn’t banned-it’s restricted. And that’s the pattern. The SEC doesn’t name and shame exchanges. Instead, it says: “If you’re not licensed, you’re not operating legally in Nigeria.” That’s a legal distinction, not a technical one.

Only Two Exchanges Are Officially Licensed (So Far)

As of late 2025, only two crypto exchanges have received full SEC approval to operate in Nigeria: Quidax and Busha. These are Nigerian-founded platforms that spent over a year preparing for compliance. They’ve built full KYC systems, integrated AML monitoring, and set up local customer service teams. They report transaction data to the SEC and the Nigerian Financial Intelligence Unit (NFIU) every month.

These two aren’t just allowed-they’re examples. The SEC uses them as templates for other applicants. If you’re a Nigerian user who wants to trade crypto legally, these are your only two options right now. Everything else? Technically, you’re using an unlicensed service. That doesn’t mean it’s illegal to use-it just means you’re on your own if there’s a scam, hack, or frozen withdrawal.

Why Binance and Others Are Still Accessible

Why hasn’t Nigeria shut down Binance completely? Because it can’t. Nigeria’s crypto market is massive. Between July 2024 and June 2025, over $92 billion in cryptocurrency flowed into the country. That’s more than any other African nation-double South Africa’s volume. People use crypto to send remittances, protect savings from inflation, and buy goods from overseas. Banning it entirely would cause economic chaos.

The government’s strategy is smarter: control it, don’t kill it. By forcing exchanges to get licensed, they gain visibility into who’s trading what, where, and when. They can track suspicious activity, freeze fraud accounts, and even collect taxes. The Nigeria Tax Administration Act (NTAA) 2025, coming into effect in 2026, will require exchanges to report user income from crypto. Defaulters face fines of ₦10 million ($6,693) in the first month, plus ₦1 million ($669) every month after.

So Binance stays online because the government can’t shut it down without pushing millions of users into even riskier, completely unregulated corners. Instead, they’re trying to pull it into the light.

What Happens If You Use an Unlicensed Exchange?

If you use KuCoin, Kraken, Bybit, or any other international platform that hasn’t applied for a Nigerian license, you’re not breaking the law by holding crypto. But you are breaking the rules if you try to deposit Naira directly or use their local customer support. You won’t get help from Nigerian authorities if your funds disappear. No police report will be filed. No SEC investigation will open. You’re outside the legal safety net.

Some users report that unlicensed exchanges still accept Naira deposits through third-party payment processors or P2P traders. That’s a gray area. The SEC doesn’t regulate those intermediaries. If someone scams you on a P2P trade, you’re on your own. Licensed exchanges like Quidax and Busha have dispute resolution teams. They can reverse fraudulent trades. Unlicensed ones? No such thing.

The Real Risk Isn’t Getting Banned-It’s Getting Scammed

The biggest danger in Nigeria’s crypto scene isn’t government bans. It’s fraud. Before 2025, unregulated platforms promised 20% weekly returns. Thousands lost life savings to Ponzi schemes disguised as “crypto investment clubs.” The ISA 2025 cracked down on those. Now, any platform offering guaranteed returns is automatically illegal-and the SEC can shut them down fast.

But scams still happen. Fake apps, phishing sites, and impersonators are everywhere. Licensed exchanges have verified websites, official customer service numbers, and SEC registration IDs. Unlicensed ones? You can’t verify them. One user on Reddit said he lost $8,000 to a “Binance Nigeria” app that looked real-until he realized it wasn’t the real Binance. He couldn’t get his money back. No one could help him.

What’s Next? More Licenses Coming

The SEC is reviewing over 20 more exchange applications as of late 2025. International platforms like Luno and BitPesa are reportedly preparing their filings. The process is slow-taking 6 to 12 months-because the SEC demands detailed audits of security systems, data storage, and staff training. Smaller exchanges are struggling to meet the costs. That’s why only two made it so far.

Expect more licensed names in 2026. The goal isn’t to limit crypto. It’s to bring it into the financial system. Nigeria wants to be the fintech hub of Africa. That means regulating, not banning. And if you want to trade safely, you’ll want to be on a licensed platform.

Bottom Line: It’s Not About Bans-It’s About Licensing

There are no official lists of banned crypto exchanges in Nigeria. Instead, there’s one simple rule: Only Quidax and Busha are licensed to offer Naira services. Everything else operates in a legal gray zone. You can still use Binance, Kraken, or KuCoin-but you lose legal protection. You can’t deposit Naira legally. You can’t get help if something goes wrong. And you’re at higher risk of fraud.

If you’re serious about crypto in Nigeria, use Quidax or Busha. They’re slow, they’re bureaucratic, and they’re not as flashy as Binance. But they’re safe. And in a market where $92 billion moved in a year, safety matters more than speed.