Nigeria’s cryptocurrency industry is entering a new phase of growth, with regulators replacing years of uncertainty with a structured licensing framework designed to attract investment while strengthening investor protection.
The shift is being driven by the Securities and Exchange Commission’s (SEC) Accelerated Regulatory Incubation Programme (ARIP), which continues to admit local and international digital asset operators under an Approval-in-Principle (AIP) regime. The programme allows firms to operate under regulatory supervision before receiving full authorisation, ensuring compliance with anti-money laundering (AML), know-your-customer (KYC) and risk management requirements.
The regulatory overhaul follows the enactment of the Investments and Securities Act (ISA) 2025, which brought qualifying digital assets under the SEC’s oversight and expanded the regulator’s powers to address market abuse, cybersecurity risks and investor protection.
The framework was further strengthened by President Bola Tinubu’s Virtual Assets Coordination Executive Order, signed on July 17, 2026. The order established a clearer division of responsibilities between the SEC and the Central Bank of Nigeria (CBN), with the SEC overseeing digital assets classified as securities while the CBN regulates virtual assets primarily used for payments and settlements.
It also created a Virtual Assets Committee comprising key regulatory agencies to coordinate policy, reduce regulatory overlap and improve oversight. In addition, the CBN has been directed to establish a regulatory sandbox for financial technology innovation, while the Nigerian Revenue Service is expected to finalise a tax framework for digital assets.
The clearer regulatory landscape is encouraging established global exchanges to formalise their operations in Nigeria. Luno became the first international exchange to receive Approval-in-Principle under ARIP, while KuCoin also secured provisional approval in 2026. They join indigenous operators including Quidax, Busha, GetEquity and several specialised firms offering custody, tokenisation and blockchain infrastructure services.
The latest approvals represent a significant shift from the uncertainty that followed the exit of Binance from Nigeria in 2024 amid regulatory disputes. Unlike the earlier period of rapid expansion, industry participants say global exchanges are now prioritising compliance, institutional custody and regulated stablecoin services over aggressive retail growth.
Nigeria remains one of Africa’s largest cryptocurrency markets, supported by a young, technology-savvy population that increasingly uses digital assets for remittances, savings and hedging against inflation. Lawmakers have also urged authorities to distinguish legitimate crypto users from criminal actors, arguing that responsible innovation should not be discouraged.
However, challenges remain. The SEC’s ₦10 billion minimum capital requirement for Virtual Asset Service Providers has drawn criticism from industry stakeholders, who argue it could limit competition and discourage startups. There are growing calls for a tiered licensing framework that reflects the size and risk profile of different operators.
For investors, the evolving regulatory framework offers greater legal certainty and could encourage institutional participation that was previously constrained by policy ambiguity. While issues such as taxation, banking access and payment infrastructure still require further clarification, Nigeria’s approach marks a significant transition from restrictive oversight to a rules-based digital asset ecosystem.
If regulators maintain policy consistency and continue coordinating supervision across agencies, Nigeria could strengthen its position as one of Africa’s leading regulated cryptocurrency markets while balancing innovation with financial stability.
