Over the years, the legal status of cryptocurrencies in Nigeria has seen a series of shifts, often leading to confusion for builders, investors, and everyday users. Although Nigeria remains one of the most active crypto markets globally in terms of adoption and trading volume, the regulatory environment has been anything but straightforward.
So where do things stand now? Let’s break it down.
CBN’s Position: A Ban or a Redirection?
In February 2021, the Central Bank of Nigeria (CBN) issued a circular restricting banks and other financial institutions from dealing with or facilitating cryptocurrency transactions. This was widely interpreted as a ban, especially by crypto users who suddenly found their accounts closed or flagged for crypto-related activity.
However, this was not a ban on crypto itself, it was a restriction on regulated financial institutions, not individuals or businesses holding or trading crypto through peer-to-peer (P2P) platforms. Crypto activity didn’t stop, it just moved further into the informal and P2P space.
By December 2023, the CBN appeared to shift its stance. A revised circular lifted the restriction, allowing banks to open accounts for crypto service providers, provided they are licensed by the Securities and Exchange Commission (SEC) and meet strict compliance requirements. This marked a turning point and a recognition that cryptocurrency is here to stay.
SEC’s Position: Recognizing Digital Assets as Securities
Meanwhile, the Securities and Exchange Commission (SEC) took steps to bring clarity. In May 2022, the SEC released its Rules on Issuance, Offering Platforms and Custody of Digital Assets, recognizing certain cryptocurrencies and tokens as securities under Nigerian law.
With the recently signed Investments and Securities Act (ISA) 2024, the SEC’s role has been strengthened. The Act officially expands the definition of “securities” to include virtual assets, meaning cryptocurrencies and digital tokens now fall squarely under SEC oversight.
So, What’s the Legal Status Today?
As it stands now:
1. Cryptocurrencies are not illegal in Nigeria.
2. They are regulated, especially when offered to the public as investment products, or when service providers operate exchanges, wallets, or custody services.
3. Any business offering crypto services is expected to register with the SEC and comply with applicable rules, including anti-money laundering (AML) and consumer protection standards.
4. Financial institutions can now work with crypto firms, provided those firms are duly licensed.
What Does This Mean for You?
For crypto founders and Web3 builders, this clarity is a signal to start building with regulation in mind. If you’re running an exchange, offering tokens, or launching a DeFi product in Nigeria, registration and compliance are no longer optional.
For investors, it’s a welcome sign of maturity in the market. With regulatory oversight now clearly defined, investments in crypto and digital asset projects carry less legal uncertainty as long as those projects operate within the law.
For traditional businesses, this opens the door to integrate blockchain and digital asset solutions with confidence especially in areas like payments, tokenized loyalty systems, and cross-border remittances.
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At Blockblista, we help crypto and Web3 projects understand and navigate Nigeria’s legal and regulatory terrain. Whether you’re just starting out or already operating, we provide:
- Legal structuring and compliance advice
- SEC registration support for digital asset service providers
- Risk assessment and advisory on product offerings
- Legal documentation for token sales, NFTs, DAOs, and more
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Let’s talk about where your project fits in this new regulatory environment. Email us contact@blockblista.com.ng
