Crypto Exchanges to Avoid if You Are Nigerian in 2025

Crypto Exchanges to Avoid if You Are Nigerian in 2025

Apr, 22 2025

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If you're a Nigerian using crypto in 2025, the biggest risk isn't price drops or hacks-it's your bank account getting frozen by the EFCC because you used an unlicensed exchange. It’s not a rumor. In September 2024, the Economic and Financial Crimes Commission froze 22 bank accounts worth ₦548.6 million linked to trading on Bybit and KuCoin. These weren’t criminals. These were ordinary people trying to send money home, save, or trade crypto. And now, they’re stuck in a 47-day nightmare trying to get half their money back.

Why This Is Different Now

Before 2025, Nigerian crypto users had a gray zone. The Central Bank of Nigeria banned banks from dealing with crypto in 2021, then reversed that in late 2023-allowing banks to serve crypto businesses if they were licensed. But there was no real enforcement. That changed with the Investments and Securities Act (ISA 2025), which came into full effect in January 2025. This law made it illegal for any crypto exchange to operate in Nigeria without a license from the Securities and Exchange Commission (SEC).

Now, if you’re using an exchange that doesn’t have an SEC license, you’re not just breaking rules-you’re putting your money at risk. The SEC doesn’t just issue warnings anymore. They freeze assets. They seize property. And they work with the EFCC to track down users.

Exchanges You Must Avoid

Here are the exchanges Nigerian users should stop using immediately:

  • Bybit - Still operating without a Nigerian license. The EFCC flagged it in September 2024 for unregulated USDT trading. Thousands of Nigerian users reported frozen accounts after trading here.
  • KuCoin - Same story. No SEC license. No Nigerian legal entity. No protection. In Q3 2024, 78% of all EFCC crypto fraud cases traced back to KuCoin transactions.
  • Binance P2P - While Binance’s global platform is huge, its peer-to-peer (P2P) trading in Nigeria operates without KYC verification, which the SEC specifically bans. P2P trades on Binance account for 92% of Nigeria’s crypto volume-but 87% of account freezes come from these trades.
  • Other offshore platforms - Any exchange that doesn’t have a Nigerian business registration (RC number) with the Corporate Affairs Commission (CAC) is a red flag. Platforms registered in Seychelles, Malta, or the British Virgin Islands have no legal responsibility to Nigerian users.

These exchanges don’t just lack licenses-they lack basic protections. No insurance. No dispute resolution. No way to prove you’re not laundering money. And when the EFCC shows up, you’re on your own.

What Makes a Crypto Exchange Safe in Nigeria?

There are only two exchanges that meet Nigeria’s new legal standards:

  • Quidax - Licensed under SEC/CRP/2025/001. Operates as Quidax Technologies Limited (RC1782456). Offers Naira deposits from ₦1, SEC-mandated insurance up to ₦50 million per account, and real-time transaction monitoring.
  • Busha - Licensed under SEC/CRP/2025/002. Registered as Busha Fintech Limited (RC1834562). Integrates with Nigerian banks, uses NIN verification for KYC, and reports all transactions to the Nigerian Financial Intelligence Unit (NFIU).

These platforms aren’t just compliant-they’re built for Nigeria. They don’t hide behind offshore servers. They have offices, Nigerian staff, and legal teams that answer to Nigerian regulators. That’s why users on licensed platforms report account freezes at just 3% rates-compared to 67% on unlicensed ones.

Two traders: one on risky unlicensed exchange, other safe on licensed platform.

How to Check if an Exchange Is Licensed

Don’t trust what’s on their website. Always verify yourself:

  1. Go to sec.gov.ng/crypto-exchanges-the SEC’s official registry. It’s updated weekly.
  2. Look for the license number format: SEC/CRP/YYYY/XXX. If it’s not there, it’s not legal.
  3. Check the Corporate Affairs Commission (CAC) portal. Search for the company name. If it doesn’t show a valid RC number, it’s not registered in Nigeria.
  4. Look for the "CBN Verified" badge on their Nigerian landing page. You can also text "VERIFY [exchange name]" to 20255 to get an SMS confirmation.
  5. Check if they ask for your National Identification Number (NIN). All licensed exchanges require it by law since February 2025.

If any of these checks fail, walk away. No matter how low the fees are, no matter how many testimonials you see. The cost of losing your money is far higher than any trading discount.

The Real Cost of Using Unlicensed Exchanges

It’s not just about losing money-it’s about time, stress, and dignity.

On Reddit, user u/LagosTrader89 lost ₦2.4 million on KuCoin. It took 47 days, 12 visits to EFCC offices, and a lawyer to recover just 63%. On Nairaland, a thread titled "My ₦5m frozen by EFCC for Bybit trading" has over 1,200 replies. Most users say they never got their full money back.

Trustpilot reviews for unlicensed exchanges average 2.1 out of 5 stars. The top complaints? "Account frozen," "no support," "no response." Meanwhile, Quidax and Busha average 4.3 out of 5.

The Nigerian Cybercrime Unit says resolving issues with unlicensed exchanges takes 28 days on average. With licensed ones? Just 3.2 days.

Woman presenting records in court as unlicensed exchanges crumble behind her.

What’s Next? The Clock Is Ticking

The SEC isn’t slowing down. By September 2025, they’ll launch automated systems that can freeze assets from unlicensed exchanges in 15 minutes. The EFCC has doubled its crypto investigation team-from 15 to 47 officers. The message is clear: if you’re using an unlicensed exchange in 2025, you’re playing Russian roulette with your savings.

Market data shows the shift is already happening. Since January 2025, unregulated crypto volume in Nigeria has dropped by 63%. Licensed platforms have seen a 220% surge. By Q2 2026, analysts predict 98% of Nigerian crypto users will be on SEC-approved platforms.

There’s one dangerous loophole: decentralized exchanges (DEXs) like Uniswap. Since ISA 2025, Nigerian usage of DEXs has jumped 34%. But here’s the catch-these platforms offer zero protection. No KYC, no insurance, no recourse. If you send crypto to the wrong address, it’s gone forever. And if the EFCC traces it back to you, you’re still liable.

What You Should Do Right Now

If you’re currently using Bybit, KuCoin, or any unlicensed platform:

  • Stop trading immediately.
  • Withdraw your funds to a licensed exchange-Quidax or Busha.
  • Don’t wait for a freeze. Act before it’s too late.
  • If your account is already frozen, contact the SEC’s Investor Protection Unit. Bring all transaction records.

There’s no shame in switching. The market has changed. The rules are clear. The safest path isn’t the one with the lowest fees-it’s the one that keeps your money and your freedom intact.

Can I still use Binance in Nigeria?

You can use Binance’s global platform to hold crypto, but you cannot use its P2P trading service in Nigeria. Binance P2P operates without SEC licensing and without proper KYC, which violates ISA 2025. Using P2P on Binance puts your bank account at direct risk of freezing. Stick to licensed exchanges like Quidax or Busha for Naira deposits and withdrawals.

What happens if my bank account gets frozen for crypto trading?

If your account is frozen, the EFCC will notify your bank. You’ll need to visit an EFCC office with proof of identity, transaction history, and bank statements. Recovery is not guaranteed. Many users report getting back only 50-70% of their funds after weeks or months. Licensed exchanges reduce this risk by 90% because all transactions are reported and verified.

Are Quidax and Busha safe for large amounts of money?

Yes. Both Quidax and Busha are required by the SEC to carry insurance covering up to ₦50 million per user account. They also undergo quarterly audits by SEC-approved firms and maintain a minimum capital of ₦500 million. These are the only two exchanges in Nigeria with this level of financial and legal protection.

Why do unlicensed exchanges have lower fees?

They don’t pay for compliance. Licensed exchanges must hire legal teams, implement real-time monitoring systems, submit to audits, and maintain Nigerian bank accounts-all of which cost money. Unlicensed platforms skip these costs, so they can charge lower fees. But that savings comes at the cost of your security. A 0.1% fee isn’t worth losing ₦1 million.

Can I use a VPN to access unlicensed exchanges?

Using a VPN doesn’t protect you. The EFCC tracks bank transactions, not just IP addresses. If you deposit Naira into an unlicensed exchange-even through a VPN-your account can still be frozen. The law targets the transaction, not how you access the site. Avoid unlicensed exchanges entirely, no matter how you connect.

Is it legal to use decentralized exchanges like Uniswap in Nigeria?

There’s no explicit ban, but DEXs like Uniswap have no legal presence in Nigeria, no KYC, and no consumer protection. If you lose funds or get flagged for suspicious activity, there’s no one to appeal to. The SEC considers DEXs a higher risk than licensed exchanges. While not yet targeted for enforcement, using them carries the same regulatory exposure as unlicensed platforms.

How do I know if a crypto exchange is really Nigerian?

Check its registration with the Corporate Affairs Commission (CAC). Go to cac.gov.ng and search for the company name. Licensed exchanges like Quidax and Busha are registered as Nigerian companies with RC numbers. If the company is registered in Seychelles, Malta, or offshore, it’s not a Nigerian entity-and it’s not safe for Nigerian users.

Will I get in trouble just for having crypto?

No. Owning crypto is not illegal in Nigeria. The law targets unlicensed platforms and unregulated trading. As long as you use a licensed exchange, keep records, and don’t engage in money laundering, you’re fully protected. The SEC encourages responsible crypto use-it just wants it done legally.

The crypto market in Nigeria isn’t shutting down-it’s cleaning up. The platforms that survive are the ones that play by the rules. If you want to trade safely, protect your money, and avoid legal headaches, stick to Quidax and Busha. Everything else is a gamble you can’t afford to lose.

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16 Comments

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    Becca Robins

    November 5, 2025 AT 12:52
    I just withdrew from KuCoin last week. Took 3 days. My bank called me twice. No one explained why. Now I'm on Quidax. No drama. Just vibes.
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    Sierra Rustami

    November 7, 2025 AT 08:55
    Nigeria doesn't own crypto. The SEC is just another tax grab with a fancy logo.
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    Abelard Rocker

    November 7, 2025 AT 18:46
    Let me tell you about the real horror story-when the EFCC freezes your account, they don’t care if you’re a student, a nurse, or a grandmother sending money to her grandkids. They see a transaction, they see ‘crypto,’ they see ‘unlicensed,’ and boom-you’re a criminal in their eyes. No trial. No hearing. Just silence. And then the bank starts calling you asking if you’re ‘involved in suspicious activity.’ Meanwhile, your rent is due, your kid’s school fees are late, and the only thing you did was use an app that said ‘low fees’ in bold letters. And now you’re stuck in a bureaucratic purgatory where no one answers your calls, no one returns your emails, and the only thing that works is crying into your phone at 2 a.m. while your savings evaporate like morning dew on a Lagos street. This isn’t regulation. This is financial terrorism dressed in a suit.
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    Hope Aubrey

    November 8, 2025 AT 02:40
    Licensed = compliant = slow. Unlicensed = freedom = risk. I get it. But if the SEC is gonna act like a bank, they should offer FDIC-level insurance. They don't. So why should I trust them?
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    Christopher Evans

    November 9, 2025 AT 22:56
    I appreciate the clarity here. This is the kind of public service post that should be shared in every Nigerian WhatsApp group. Thank you for compiling the facts without fear.
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    Kyung-Ran Koh

    November 10, 2025 AT 00:59
    I switched to Busha last month. The KYC took 48 hours, but now my transfers are instant. I even got a welcome bonus. 🙌 No more sleepless nights worrying about my bank account.
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    gerald buddiman

    November 10, 2025 AT 20:06
    I lost $8,000 on Bybit in December... I swear to God, I cried for three days. I went to the EFCC office in Abuja. They handed me a form. Said 'come back next week.' I went back. They said 'your file is being reviewed.' I went back again. They said 'we don't handle individual cases.' I had to hire a lawyer. That cost me another $1,200. And I got back $3,500. That’s not justice. That’s a scam with paperwork.
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    andrew seeby

    November 11, 2025 AT 00:57
    I use a VPN and still trade on Binance P2P. No one’s come for me yet. Maybe they’re just scared of the volume? 😅
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    Steven Lam

    November 12, 2025 AT 04:01
    Using a VPN is like wearing a mask during a robbery. They still know who you are because your bank account is Nigerian. You're not clever. You're just dumb with extra steps.
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    Arjun Ullas

    November 12, 2025 AT 08:47
    The regulatory framework is not perfect, but it is the only path forward. Unlicensed platforms operate in a legal vacuum. They offer no recourse. They offer no accountability. They offer no future. The Nigerian state is not your enemy-it is your only shield against global predators. Choose compliance. Choose safety. Choose dignity.
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    Tara R

    November 13, 2025 AT 05:45
    This is what happens when you let the masses decide what’s legal. The SEC is just enforcing basic financial hygiene. If you can’t follow the rules, you shouldn’t be playing.
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    Ryan McCarthy

    November 13, 2025 AT 06:20
    I used to think I was being smart by avoiding the fees. Turns out I was just being reckless. I’m glad I switched. My peace of mind is worth more than any 0.1% discount.
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    Glen Meyer

    November 14, 2025 AT 22:36
    The real problem? The government doesn’t want Nigerians to get rich. They want to control every naira. This isn’t regulation-it’s control.
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    Pranjali Dattatraya Upadhye

    November 15, 2025 AT 22:43
    I love how people act like Quidax and Busha are perfect. They’re not. Their app crashes sometimes. Their customer service takes 24 hours. But at least when something goes wrong, someone answers. That’s more than I can say for KuCoin’s ghost support. I’ll take slow and safe over fast and gone any day.
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    Diana Smarandache

    November 16, 2025 AT 06:01
    This isn't about crypto. This is about Nigeria's deep-seated fear of financial autonomy. The EFCC isn't protecting citizens-they're protecting the status quo. And the status quo is rigged.
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    Allison Doumith

    November 16, 2025 AT 17:29
    We are told to trust institutions that have failed us for decades. Banks freeze accounts for no reason. The CBN reverses policy like it’s changing outfits. The SEC has no track record of protecting investors-only punishing them. So why should I believe this new license means safety? It’s just a shiny sticker on the same broken machine.

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