VASP Nigeria: What You Need to Know About Crypto Regulations and Compliance in Nigeria
When you hear VASP Nigeria, a Virtual Asset Service Provider operating under Nigeria’s financial regulations. Also known as crypto exchange or wallet provider registered with the SEC Nigeria, it refers to any business that handles crypto transactions, custody, or trading for Nigerians—and it’s now legally required to follow strict rules. This isn’t just about compliance; it’s about survival. In 2021, Nigeria’s Central Bank shut down bank accounts tied to crypto exchanges. Now, in 2025, the SEC requires every VASP to register, verify users, report suspicious activity, and keep records for at least five years. If you’re sending Bitcoin from Lagos or trading on a local platform, you’re already interacting with a VASP—whether you know it or not.
Related entities like crypto regulation Nigeria, the legal framework governing digital asset transactions in the country, and Nigerian crypto laws, the specific statutes enforced by the SEC and CBN are tightly linked to how VASPs operate. For example, a VASP can’t accept deposits from unverified users, and it must block transactions linked to sanctioned addresses. This isn’t theoretical—over 20 Nigerian VASPs have been suspended since 2023 for failing to meet KYC standards. Meanwhile, users who rely on crypto for remittances, savings, or small business payments now face a new reality: they must use only licensed platforms. The government isn’t banning crypto—it’s forcing it into the open. And that means fewer scams, but also fewer loopholes.
What does this mean for you? If you’re trading on Binance or using a local wallet like PiggyVest or Luno, you’re already under the VASP Nigeria umbrella. You’ve likely been asked to upload ID, confirm your address, or answer questions about why you’re sending crypto. That’s not paranoia—it’s the law. And while some users still turn to P2P platforms to bypass restrictions, those platforms are increasingly risky. The SEC has started tracking wallet addresses linked to unregistered VASPs, and fines can reach millions of naira. The real shift isn’t in technology—it’s in accountability. The posts below cover exactly this: how Nigerians are adapting, what platforms are still operating legally, how scams exploit gaps in enforcement, and what happens when you ignore the rules. You’ll find real stories from users who got locked out of their accounts, exchanges that survived the crackdown, and the quiet rise of compliant DeFi tools that work within the system. This isn’t about stopping crypto—it’s about making it work under new rules. And if you’re active in Nigeria’s crypto space, you need to know how to play by them.
- By Eva van den Bergh
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- 17 Nov 2025
Central Bank of Nigeria Crypto Policy Evolution: From Ban to Regulation
From banning crypto in 2021 to fully regulating it by 2025, Nigeria's Central Bank shifted from resistance to control. Learn how the SEC now oversees licensed exchanges and why banks can finally support crypto again.