Crypto Exchanges Nigerians Should Avoid in 2025

Since the Investments and Securities Act of 2025 (ISA2025) turned crypto into a regulated asset class, Nigerian users are suddenly faced with a stark choice: stick with the few fully licensed platforms or risk everything on offshore services that operate without approval. The stakes are high - bank accounts get frozen, funds vanish, and there’s no safety net if a platform disappears. This guide pinpoints the exchanges you should steer clear of, explains why they’re risky, and shows you how to confirm a platform’s compliance before you trade.

Key Takeaways

• Only Quidax and Busha hold full SEC licenses in Nigeria as of March2025.
• Using unlicensed exchanges such as Bybit, KuCoin or Binance P2P has led to over ₦548million in frozen accounts since 2024.
• SEC‑licensed platforms provide insurance up to ₦50million per user and integrate directly with Nigerian banks.
• Verify licensing by checking the official SEC registry (sec.gov.ng/crypto‑exchanges) and looking for the “SEC/CRP/2025/###” number.
• Switching to a licensed exchange cuts your risk of asset seizure by more than 80% according to community surveys.

crypto exchanges Nigeria currently operate under a clear regulatory divide - licensed versus unlicensed - and the line is drawn by the Securities and Exchange Commission (SEC) under ISA2025.

What the 2025 Regulatory Framework Looks Like

The Investments and Securities Act of 2025 reshaped the market in three concrete ways:

1. Mandatory licensing. Every virtual asset service provider must obtain a license from the Securities and Exchange Commission. The SEC now treats crypto tokens as securities.
2. Strict AML/CFT standards. Platforms need biometric KYC, transaction‑monitoring engines capable of handling 10,000+ TPS with 99.99% uptime, and real‑time reporting to the Nigerian Financial Intelligence Unit.
3. Capital and audit requirements. Minimum operational capital of ₦500million and quarterly audits by SEC‑approved firms are non‑negotiable.

Failure to meet any of these criteria triggers enforcement actions ranging from asset freezes to full seizure under Section134 of ISA2025.

Licensed Exchanges - The Safe Choices

Only two platforms have cleared the SEC’s vetting process:

• Quidax - operates as Quidax Technologies Limited (RC1782456) and offers Naira deposits as low as ₦1.
• Busha - registered as Busha Fintech Limited (RC1834562) with similar low‑minimums.

Both provide:

• SEC‑mandated insurance up to ₦50million per user.
• Real‑time transaction monitoring that flags suspicious activity within 500ms.
• Dual verification for every crypto‑to‑fiat conversion, as required by the Central Bank of Nigeria (CBN).

Unlicensed Exchanges - Why They’re Dangerous

Platforms operating without SEC approval include:

• Bybit
• KuCoin
• Binance P2P

These services often run through offshore entities in Seychelles or Malta, lack Nigerian legal registration, and cannot integrate with local banks. The result? Users are forced into peer‑to‑peer (P2P) trades that comprised 92% of the country’s crypto volume in 2024 (Chainalysis).

Key risks documented in 2024-2025:

• Account freezing - the Economic and Financial Crimes Commission (EFCC) froze 22 accounts worth ₦548.6million linked to Bybit and KuCoin.
• No consumer protection - unlicensed platforms have no SEC‑mandated insurance, leaving users exposed to total loss.
• Higher fees on hidden services - while advertised fees look lower (0.15% vs 0.25% on licensed platforms), the indirect cost of frozen assets outweighs any savings.
• Lengthy dispute resolution - average 28days with the SEC vs 3.2days on licensed platforms (Nigerian Cybercrime Unit, Q22025).

Real‑World Stories: What Happens When You Use an Unlicensed Platform

Reddit user u/LagosTrader89 lost access to ₦2.4million after the EFCC froze his account for trading on KuCoin. It took 47days and 12 visits to EFCC offices to recover only 63% of the funds. A Trustpilot analysis of 1,247 Nigerian reviews (Jan‑Aug2024) gave unlicensed exchanges an average rating of 2.1/5, with 89% of negative feedback citing “account freezing” or “regulatory issues.”

The Blockchain Association of Nigeria’s September2024 survey found 67% of users of unlicensed exchanges experienced at least one freeze, versus just 3% for licensed platforms. On Nairaland, a thread titled “My ₦5m frozen by EFCC for Bybit trading” attracted over 1,200 replies, many reporting never‑fully‑recovered funds.

How to Verify Whether an Exchange Is Licensed

Follow these three steps before depositing any Naira:

1. Check the SEC registry. Visit sec.gov.ng/crypto-exchanges. Licensed platforms display a unique license number like SEC/CRP/2025/001.
2. Confirm local incorporation. Use the Corporate Affairs Commission (CAC) portal to verify the company’s RC number (e.g., Quidax’s RC1782456).
3. Look for the CBN Verified badge. Licensed exchanges must show a “CBN Verified” badge on their Nigerian landing page, which can be validated via SMS: send VERIFY [exchange name] to 20255.

If any of these checks fail, walk away.

Side‑by‑Side Comparison: Licensed vs. Unlicensed Exchanges

Practical Steps to Protect Your Crypto Assets

1. Move funds to a licensed platform. If you currently hold assets on Bybit, KuCoin or Binance P2P, withdraw them to a local bank and deposit via Quidax or Busha within 48hours.
2. Enable two‑factor authentication (2FA). All licensed exchanges support Google Authenticator; treat this as a non‑negotiable security layer.
3. Keep records of all withdrawals. Screenshot the transaction ID, the SEC license number displayed, and the CBN verification SMS confirmation.
4. Stay updated. The SEC registry is refreshed weekly - set a reminder to check for new licensed entrants every month.
5. Consider diversification. While licensed exchanges are safest, you may allocate a small fraction (≤5%) to decentralized exchanges (e.g., Uniswap) only if you understand the added risk and have a secure wallet.

What to Expect from Future Enforcement

Starting September2025, the SEC will roll out automated monitoring that can freeze assets from unlicensed platforms within 15minutes. The EFCC has expanded its crypto‑fraud unit to 47 investigators, aiming for a total shutdown of illegal exchanges by Q42025. Analysts predict that by early2026, 98% of Nigerian crypto users will be on licensed platforms. The only remaining gap will be the growing use of decentralized exchanges, which lack any regulatory oversight.