Is crypto legal in Nigeria

Cryptocurrency in Nigeria: Frequently Asked Questions

Buying and Trading

Q: How can I buy cryptocurrency in Nigeria?

A: You can buy cryptocurrency in Nigeria by following these steps:

1. Create an account on a cryptocurrency exchange website or mobile app.
2. Fund your account via bank transfer.
3. Buy Bitcoin or other cryptocurrencies using your funded account.

Popular exchanges include Binance, Coinbase, Luno, Quidax, NairaEx, and BitPesa.

Q: Can cryptocurrency be converted to cash in Nigeria?

A: Yes, apps like Breet allow individuals and businesses to convert Bitcoin to Naira securely and efficiently.

Q: How do I withdraw Bitcoin to my bank account in Nigeria?

A: You can use crypto exchanges like Koyn. The process typically involves:

1. Registering on the exchange
2. Adding your bank account details
3. Sending your cryptocurrency to the provided wallet address
4. Once confirmed, the crypto is converted to naira and sent to your bank account

Market and Regulations

Q: How big is the crypto market in Nigeria?

A: The Nigerian crypto market is estimated to be worth over $400 million.

Q: How many Nigerians own crypto?

A: It’s estimated that over 22 million people, or 10.3% of Nigeria’s population, currently own cryptocurrency.

Q: Is crypto trading banned in Nigeria?

A: The situation is complex. In December 2023, the Central Bank of Nigeria (CBN) lifted its 2021 ban on cryptocurrency transactions. However, the government has announced plans to ban person-to-person cryptocurrency trading in naira.

Q: Is Binance legal in Nigeria?

A: The Nigerian Securities and Exchange Commission has declared that Binance Nigeria is not registered or regulated, making its operations in Nigeria illegal.

Q: Which crypto sites are blocked in Nigeria?

A: The Nigerian Communications Commission (NCC) has ordered telecom companies to restrict access to several crypto exchange websites, including Binance, Coinbase, and Kraken.

Banking and Cryptocurrency

Q: Does Nigeria bank accept cryptocurrency?

A: The CBN has lifted restrictions on cryptocurrency bank accounts and issued guidelines to regulate bank accounts for Virtual Assets Service Providers (VASPs).

Q: Why did CBN initially ban cryptocurrency?

A: The CBN cited concerns over money laundering, terrorism financing, cybercrime, and the volatility of cryptocurrencies as reasons for the initial ban.

Current Situation

Q: Is cryptocurrency legal in Nigeria now?

A: Yes, the government lifted its ban on crypto in December 2023. However, the regulatory landscape remains fluid, with new restrictions being considered.

Q: Why is Nigeria fighting crypto?

A: Regulatory authorities fear that widespread adoption of cryptocurrencies could destabilize traditional financial systems and markets. There are also concerns about security risks, including hacking, fraud, money laundering, and terrorism financing.