SEC Nigeria Crypto Guidelines: What Financial Institutions Must Know in 2026

When Nigeria’s Securities and Exchange Commission (SEC) released its final cryptocurrency guidelines under the Investment and Securities Act (ISA) 2025, it didn’t just update rules-it rewrote the playbook for how finance works in the country. For banks, payment processors, and fintechs, the change wasn’t subtle. If you’re a financial institution in Nigeria and you’re dealing with crypto, you now have a clear path to follow-or face serious consequences.

What Changed With the ISA 2025?

Before March 2025, crypto lived in a legal gray zone. The Central Bank of Nigeria (CBN) had banned banks from handling crypto transactions in 2021, but that didn’t stop Nigerians from using it. By 2024, Nigeria led the world in peer-to-peer crypto trades, with over $92 billion flowing through the market in just one year. People were buying Bitcoin, sending remittances via crypto, and trading tokens-but without any legal protection.

The ISA 2025 changed that. It officially classified digital assets as securities. That means anything from Bitcoin to a tokenized stock is now under the SEC’s control. This isn’t just a paperwork update. It’s a full legal shift. If you’re running a crypto exchange, wallet service, or even a crypto lending platform, you now need a license from the SEC to operate. No license? You’re breaking the law.

Who Needs a License?

The SEC defines these as Virtual Asset Service Providers (VASPs), and they include:

• Crypto exchanges like Quidax and Busha (both licensed since 2024)
• Custodial wallet providers
• Crypto-to-fiat on/off ramps
• Decentralized finance (DeFi) platforms that interact with Nigerian users
• Token issuance platforms offering investment contracts

Banks and financial institutions aren’t required to get a VASP license themselves-but they can’t legally serve unlicensed VASPs anymore. The CBN’s 2023 policy reversal allowed banks to open accounts for licensed VASPs. That’s a big deal. Before, even if a crypto company was operating legally, banks would freeze their accounts. Now, if you’re a bank and you’re helping a VASP, that VASP must be SEC-licensed. Otherwise, your institution risks penalties.

AML/CFT Rules Are Non-Negotiable

The Nigerian Financial Intelligence Unit (NFIU) now requires every licensed VASP to follow strict anti-money laundering and counter-terrorism financing rules. That means:

• Know Your Customer (KYC) checks on every user-no exceptions
• Transaction monitoring for suspicious activity
• Reporting large or unusual transfers to the NFIU within 24 hours
• Keeping records for at least five years

If you’re a financial institution working with a VASP, you’re expected to verify their compliance. If a VASP you’re banking gets caught laundering money, your bank could be fined or lose its license too. The SEC and NFIU share data. There’s no hiding.

Taxes Are Now Enforced

The Nigeria Tax Administration Act (NTAA) 2025, effective January 1, 2026, made crypto taxes real. VASPs must now report all user transactions and pay corporate income tax. Individual users owe capital gains tax on crypto profits.

Non-compliance hits hard:

• First month of default: ₦10 million ($6,693) fine
• Each additional month: ₦1 million ($669) extra
• Repeated violations lead to license suspension or revocation

The SEC is building systems to track centralized exchange transactions directly. This isn’t a warning-it’s an audit-ready system. If you’re a VASP, you need accounting software that can generate tax reports in real time. If you’re a bank, you need to ask your VASP clients for proof of tax compliance before opening or maintaining their account.

What Happens If You Ignore the Rules?

The penalties aren’t theoretical. In late 2025, the SEC shut down three unlicensed crypto lending platforms that promised 20% monthly returns. They were classic Ponzi schemes. The operators were arrested. Their bank accounts were frozen. Their customers lost everything.

For financial institutions, the risk is reputational and financial. If your bank is linked to a fraudulent VASP-even unknowingly-it damages trust. The SEC can fine banks up to ₦50 million ($33,465) for facilitating unlicensed operations. Insurance companies are already refusing coverage for banks that don’t verify VASP licenses.

What Should Financial Institutions Do Now?

If you’re a bank, payment processor, or fintech in Nigeria, here’s what you need to do immediately:

1. Check if any VASP clients you serve are SEC-licensed. Visit the SEC Nigeria website for the official list.
2. Require proof of licensing before opening or renewing accounts for crypto businesses.
3. Train your compliance team on the NFIU’s AML/CFT requirements for crypto.
4. Ask your VASP clients for their latest tax compliance certificate under NTAA 2025.
5. Update your internal policies to reflect the ISA 2025 and NTAA 2025 requirements.

Don’t wait for a warning. The SEC isn’t giving grace periods anymore. If you’re serving a VASP without verifying their license, you’re already in violation.

Why This Matters Beyond Compliance

This isn’t just about avoiding fines. It’s about opportunity. Nigeria has 28.69 million crypto users projected by 2026. That’s one in every five adults. The people are already using crypto. The question isn’t whether you’ll engage with it-it’s whether you’ll do it safely and legally.

Licensed VASPs are now attracting foreign investment. Nigerian fintechs are partnering with global platforms. The SEC’s framework is being studied by Ghana, Kenya, and South Africa as a model. If your institution gets ahead of this, you’re not just complying-you’re positioning yourself as a leader in Africa’s next financial revolution.

What’s Next?

The SEC is already working on amendments to include decentralized exchanges and NFT marketplaces under licensing. Tax reporting rules will get stricter in 2027. The CBN is exploring a digital naira integration with licensed crypto platforms. The rules are evolving, but the foundation is set.

The message is clear: If you’re in finance in Nigeria, crypto isn’t optional anymore. You either operate within the law-or you risk being left behind.