SEC Nigeria Crypto Guidelines: What Financial Institutions Must Know in 2025

Before March 2025, Nigerian banks couldn’t touch cryptocurrency businesses. Not even to open an account. Now, they’re required to. That’s the kind of flip Nigeria’s financial regulators pulled with the Investment and Securities Act (ISA) 2025. Signed into law by President Bola Ahmed Tinubu on March 31, 2025, this isn’t just a tweak-it’s a complete overhaul of how crypto operates in Nigeria. And for financial institutions, it means one thing: if you’re doing business with crypto, you’re now under the direct watch of the Securities and Exchange Commission (SEC) Nigeria.

What the SEC Nigeria Actually Controls Now

The ISA 2025 didn’t just make crypto legal-it made it a security. That means any digital asset sold as an investment, whether it’s a token, coin, or NFT tied to a profit promise, now falls under the same rules as stocks and bonds. The SEC Nigeria doesn’t just have a say anymore-it has full authority to license, monitor, fine, and shut down anyone running a crypto exchange or virtual asset service provider (VASP) without permission.

This isn’t about banning crypto. It’s about bringing it into the light. Before, crypto platforms operated in a legal gray zone. Many were Ponzi schemes disguised as investment apps. Now, the SEC can go after them with real legal teeth. Operators of fraudulent schemes face stiffer penalties, including criminal charges. And if you’re running a crypto platform without a license? You’re breaking the law.

Who Needs a License from SEC Nigeria?

If your business does any of these, you need a license:

• Operating a crypto exchange (buying, selling, or trading digital assets)
• Providing custody services for crypto wallets
• Offering crypto-based investment products
• Running a platform that matches buyers and sellers of crypto (peer-to-peer facilitation)

You don’t need a license if you’re just holding Bitcoin in your personal wallet or sending it to a friend. But if you’re building a business around it-especially if you’re taking fees, managing funds, or offering returns-you’re regulated.

Licensed platforms like Quidax and Busha got their approvals in 2024. They’re now required to follow strict rules: know-your-customer (KYC) checks, real-time transaction monitoring, and regular reporting to the SEC. Unlicensed platforms? They’re not just risky-they’re illegal.

How Banks Fit Into the New Rules

In 2021, the Central Bank of Nigeria (CBN) told banks: “Don’t touch crypto.” That caused chaos. Legitimate businesses couldn’t pay employees or settle transactions. Many turned to informal channels or offshore banks.

That changed in 2023. The CBN reversed course. Now, banks are not just allowed-they’re expected-to provide banking services to SEC-licensed VASPs. This is huge. It means crypto companies can now open corporate bank accounts, process Naira payments, and integrate with Nigeria’s formal financial system.

But here’s the catch: banks aren’t free to pick and choose. They must verify that the VASP has a valid SEC license. If they bank an unlicensed platform, the bank itself can be penalized. So, Nigerian banks now have a new compliance job: checking SEC’s public registry of licensed VASPs before onboarding any crypto client.

The Other Regulators You Can’t Ignore

The SEC isn’t working alone. Three other agencies are part of the puzzle:

• Central Bank of Nigeria (CBN): Still sets monetary policy. They ensure crypto doesn’t destabilize the naira or trigger capital flight.
• Nigerian Financial Intelligence Unit (NFIU): Monitors for money laundering and terrorist financing. Every crypto transaction over ₦500,000 must be reported.
• Nigeria Tax Administration (NTAA) 2025: Starting January 2026, VASPs must collect and remit taxes on crypto gains. Failure means fines: ₦10 million ($6,693) for the first month, then ₦1 million ($669) every month after that.

Financial institutions must coordinate with all three. A crypto client might be approved by the SEC, but if their transaction patterns trigger NFIU alerts, the bank has to freeze the account. If the client hasn’t paid taxes, the tax authority can demand records from the bank. Compliance isn’t optional-it’s layered.

What Happens If You Don’t Comply?

The penalties aren’t warnings-they’re business killers.

• Unlicensed VASPs: SEC can shut them down immediately. Their websites get blocked. Their domain names seized.
• Non-compliant banks: Can lose their operating license from the CBN. Fines up to ₦500 million ($334,000) for repeated violations.
• Tax evasion: NTAA 2025 allows the Federal Inland Revenue Service (FIRS) to freeze assets and pursue criminal charges against VASPs that don’t file.

In 2024, the SEC suspended three unlicensed crypto platforms after investigations revealed they were running fake staking programs. One of them had over 120,000 users. All accounts were frozen. Users lost access to their funds. The operators fled the country.

Market Reality: Nigeria Is Still the Crypto Giant

Despite all the rules, Nigerians are still buying crypto faster than almost anyone else on Earth. Between July 2024 and June 2025, Nigeria saw $92.1 billion in crypto transactions-more than double South Africa’s volume. It’s the #1 country in the world for peer-to-peer crypto trading.

Why? Because the naira is unstable. Inflation is high. Young people are looking for ways to save, earn, and send money across borders without relying on slow, expensive banks. Crypto isn’t a trend-it’s a necessity for millions.

The SEC knows this. That’s why the ISA 2025 isn’t about stopping adoption. It’s about controlling it. The goal is to protect users, stop fraud, and bring crypto into the formal economy. And so far, it’s working. Licensed exchanges report a 40% drop in fraud cases since licensing began.

What’s Next for Financial Institutions?

If you’re a bank, fintech, or payment processor in Nigeria, here’s your action list:

1. Check the SEC’s official VASP registry daily. It’s public and updated weekly.
2. Train your compliance team on crypto-specific AML rules. The NFIU released new guidelines in May 2025.
3. Set up automated transaction monitoring for crypto-related deposits and withdrawals.
4. Don’t onboard any crypto business without proof of SEC licensing.
5. Prepare for tax reporting under NTAA 2025. Start collecting user data now-even if the law starts in 2026.

The window for playing catch-up is closing. The SEC is already auditing licensed VASPs. Banks that ignore this are risking their licenses. Those that adapt will be the ones shaping Nigeria’s next financial frontier.

How Many Nigerians Are Using Crypto?

By 2026, an estimated 28.69 million Nigerians-about 13% of the population-will own or regularly use cryptocurrency. That’s more than the entire population of New Zealand. And it’s growing fast.

Most users are under 35. Many use crypto to send remittances, buy foreign goods, or invest in global assets. They don’t care about regulation. They care about access. The SEC’s job is to make sure that access doesn’t come at the cost of safety.

The message is clear: crypto isn’t going away. But it’s no longer the wild west. It’s a regulated market. And if you’re a financial institution in Nigeria, you either get onboard-or get left behind.