Nigeria is charting a new course in cryptocurrency regulation following months of turbulence with global exchange Binance, balancing enforcement against illicit activities with efforts to foster business innovation. The Securities and Exchange Commission (SEC) began approving licenses for local crypto platforms in September 2024, six months after banning Binance’s naira services over allegations of market manipulation and tax evasion. This regulatory pivot comes as lawmakers finalize the 2025 Nigerian Investment and Securities Bill, which aims to grant legal status to digital assets while excluding fiat-backed currencies from crypto exchanges.
Authorities intensified scrutiny after revealing $26 billion flowed through Binance from unidentified sources between 2023 and 2024, according to Central Bank Governor Olayemi Cardoso. The government detained Binance executive Tigran Gambaryan on tax evasion and money laundering charges, while his colleague Nadeem Anjarwalla fled custody amidst the crackdown. Prosecutors filed an $81.5 billion lawsuit against the exchange, alleging unlicensed operations and contribution to the naira’s destabilization through currency speculation portals.
The regulatory overhaul seeks to capitalize on Nigeria’s surging crypto adoption, driven by economic instability and currency devaluation following the 2015 oil price crash. Financial infrastructure upgrades include the Nigeria Inter-Bank Settlement System’s integration with blockchain networks to enhance transaction transparency. Moniepoint, a Nigerian crypto-fintech firm, achieved unicorn status with a $1 billion valuation in January 2025 as digital payment solutions expanded nationwide.
While maintaining restrictions on foreign exchanges, the Central Bank lifted its 2021 ban on bank accounts for crypto businesses in late 2023, enabling domestic platforms to operate within clearer guidelines. Experts propose establishing a Bitcoin reserve to hedge against inflation, alongside reforms to attract foreign investment. As Africa’s largest crypto market navigates this transition, stakeholders watch whether Nigeria can leverage blockchain innovation to stabilize its economy while curbing financial risks.
Sources:
https://www.theafricareport.com/360383/nigerias-crypto-comeback-sec-approves-local-exchanges-post-binance-ban/
https://www.africa.com/nigeria-embraces-crypto-with-new-law-amid-regulatory-caution/
https://www.theafricareport.com/377463/nigeria-vs-binance-what-is-behind-the-high-stakes-crypto-showdown/
https://www.africanews.com/2023/06/13/nigerian-markets-regulator-ends-local-binance-operations/
Nigeria’s Crypto Landscape is Transforming through Fintech Growth
