Nigerian SEC Crypto Licensing Requirements for Exchanges: What You Need to Know in 2026

If you're running or planning to launch a crypto exchange in Nigeria, you can't afford to ignore the Nigerian SEC crypto licensing rules. The game changed in 2025 when President Bola Ahmed Tinubu signed the Investments and Securities Act 2025-a law that finally gave the Securities and Exchange Commission clear power to regulate crypto exchanges like any other financial market. No more gray areas. No more loopholes. If you're trading crypto in Nigeria, you're now under SEC supervision.

You Must Register as a Digital Asset Exchange (DAX)

You can't just set up a website, connect a wallet, and start trading. The SEC requires every crypto exchange operating in Nigeria to register as a Digital Asset Exchange (DAX). This isn't a suggestion. It's the law. And it applies to anyone targeting Nigerian users-even if your company is based overseas. If you're advertising on Nigerian social media, sending emails to Nigerian addresses, or running ads in local publications, you're subject to SEC rules.

The registration process is strict. You need to prove you're a legitimate business with real financial backing. The minimum paid-up capital is ₦500 million-about $325,000 USD. That money can be in cash, fixed assets like property, or quoted securities, but the SEC will dig into where it came from. No shell companies. No offshore funds with no paper trail. They want clean, traceable capital.

On top of that, you need a fidelity bond worth at least 25% of your paid-up capital. That’s ₦125 million minimum. This bond acts like insurance for your customers. If your exchange gets hacked or mismanages funds, the bond can help cover losses. It’s not just a fee-it’s a commitment to protect users.

Documents You Can’t Skip

The SEC doesn’t just ask for money. They ask for proof you’re organized. Here’s what you need to submit:

• Certificate of Incorporation from the Corporate Affairs Commission (CAC)
• Memorandum and Articles of Association (MEMART) that clearly state your business will operate as a crypto exchange
• CAC Forms 1.1 and Form 7 (standard corporate filings)
• Audited financial statements or a detailed statement of affairs if you’re a new company

These aren’t bureaucratic hoops. They’re the foundation of accountability. The SEC wants to know who owns the company, how it’s structured, and whether it has the internal controls to handle millions in digital assets. If your MEMART says you’re a “digital marketing firm,” you’ll be rejected. Your documents must match your business-no exceptions.

Compliance Isn’t Optional-It’s Built In

Once you’re licensed, you’re not done. You now have ongoing obligations. The biggest ones are Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT). The SEC doesn’t give you a checklist. Instead, they expect you to follow CBN guidelines and build your own systems that work.

You must verify every customer. That means collecting government-issued IDs, proof of address, and sometimes even proof of income. You can’t let someone sign up with just an email and a phone number. Anonymous trading is banned. Every transaction must be traceable. The SEC is watching for suspicious patterns-sudden large deposits, rapid withdrawals, or transfers to known scam wallets.

And here’s something many miss: you’re now responsible for tax reporting. The SEC is working with the Federal Inland Revenue Service (FIRS) to track crypto transactions. If you’re trading Bitcoin or USDT, your activity could end up on a tax auditor’s desk. That’s why the SEC is pushing for licensed exchanges-they want visibility into where money flows.

What You Can’t Do (Even If You’re Licensed)

Getting a license doesn’t give you free rein. The SEC has clear red lines:

• You cannot give loans, advances, or financial help to your own employees, officers, or investors to trade on your platform. No insider favors.
• You cannot list any new digital asset without prior SEC approval. Every token-whether it’s Bitcoin, Ethereum, or some new meme coin-must be reviewed and cleared before trading begins.
• You cannot operate without a fidelity bond. If it lapses, your license is suspended.

These rules exist because of what happened in the past. Nigeria has seen dozens of rug pulls-where developers hype a coin, pump the price, then vanish with investors’ money. In 2023 alone, over $200 million was lost in Nigerian crypto scams. The SEC is trying to stop that. By controlling what assets can be traded, they’re cutting off the most common scam route.

Only Two Exchanges Are Licensed So Far

As of early 2026, only two companies have received provisional licenses: Quidax and Busha. They were the first to go through the process under the new rules, and they’re now the benchmark for everyone else.

The SEC launched the Accelerated Regulatory Incubation Programme (ARIP) in June 2024 to speed things up. It’s working-but slowly. The commission admitted in December 2024 that they plan to issue more licenses “a lot quickly” in 2025. That’s a sign they know the market is growing and they can’t afford to delay.

But don’t expect a flood of approvals. The SEC is being selective. They’re not just checking paperwork-they’re testing systems. Can your platform handle 10,000 users logging in at once? Can your KYC system catch fake IDs? Can your cold storage prevent hacks? If you can’t answer these questions, you won’t get approved.

Why This Matters for Nigerian Crypto Users

Most Nigerians use crypto to protect their savings from inflation and currency devaluation. The naira has lost over 100% of its value against the dollar since 2020. People turn to Bitcoin and stablecoins because banks won’t help them. But they’re also scared. A 2024 survey by Busha found nearly half of Nigerian crypto users avoid trading because they don’t trust the platforms.

The SEC’s rules are meant to fix that. Licensed exchanges must have insurance, clear terms, and customer support. They can’t disappear overnight. They must report to regulators. That’s a big step forward.

But there’s a trade-off. The new rules make transactions slower. More ID checks. Longer wait times for withdrawals. Some users feel it’s too much. But the alternative-unregulated P2P trading-is even riskier. You could pay a stranger in cash for Bitcoin, only to find out they vanished. Or you could buy a fake token that crashes the next day.

The Future: More Oversight, More Taxation

The SEC isn’t done. They’re already looking ahead. One major goal is to bring crypto into Nigeria’s tax system. Right now, many crypto gains go untaxed. The SEC wants to change that. They’re working with FIRS to make it easier to track income from trading, staking, and mining. If you’re making profits, you’ll eventually need to declare them.

There’s also talk of expanding licensing to include crypto custody services, tokenized securities, and even crypto-backed loans. The goal? To turn Nigeria’s informal crypto market into a formal, regulated financial sector.

That’s good news for serious businesses. It’s bad news for scams. And for regular users? It means more safety-but more paperwork.

What Happens If You Ignore the Rules?

Operating without a license is no longer a gray area. The 2025 Act introduced harsher penalties for illegal crypto operations. Fines can reach millions of naira. Individuals can face jail time. And the SEC has the power to block websites, freeze bank accounts, and shut down operations.

Foreign exchanges that ignore this risk getting blocked entirely. Nigeria has already restricted access to several unlicensed platforms. If you’re not registered, your users won’t be able to deposit or withdraw. Your business becomes useless.

Bottom Line: Play by the Rules or Get Left Behind

The Nigerian crypto market is no longer wild west. It’s becoming a regulated financial ecosystem. The SEC isn’t trying to kill crypto. They’re trying to save it-from itself.

If you’re building a crypto exchange, the path is clear: meet the capital requirements, submit the documents, pass the compliance checks, and get licensed. It’s expensive. It’s slow. But it’s the only way to operate legally.

For users, it means safer platforms, clearer rules, and fewer scams. It’s not perfect-but it’s progress. And in a country where crypto is used to survive economic instability, that kind of progress matters more than ever.