Nigerian Government Frowning At Crypto

[Glowy]

The Nigerian Government is not out-rightly, saying what they have against Crypto, apart from the fact that it aids money laundering. Whilst that is true there is also another part that is ignored, the fact that crypto has made life worth living for some Nigerian youth who ventured into it. Yet, there are moves to trace crypto transactions, which will most likely work against those found...
Let's look the law is, aiming to stifle crypto.

Nigeria’s New Legal & Regulatory Framework on Crypto Traceability

1.   Investment and Securities Act (ISA) 2025
   Officially recognizes cryptocurrencies and digital assets as securities.
   Brings Virtual Asset Service Providers (VASPs), Exchanges, and Operators under SEC regulation.
   Requires legal entity identifiers (LEIs) and stricter reporting making transactions linked to identifiable entities easier to trace.

2.   SEC’s Transparency Push (2024–2025)
   SEC is demanding weekly/monthly transaction reports from crypto firms.
   Promoting the use of blockchain analytics tools to track wallet activity and identify suspicious flows.
   Stablecoins and new digital assets must enter regulatory sandboxes with built-in oversight.

While there is no single law that says “CBN must trace every crypto transaction”, the combined effect of ISA 2025, MLPPA 2022 (This effectively forces regulated crypto platforms to keep auditable records that regulators can trace).
CBN guidelines(Banks are required to apply KYC/AML checks, enabling traceability of crypto-fiat flows), and SEC reporting rules is that:
•   All regulated crypto activity in Nigeria is traceable (via KYC, reporting, and monitoring).
•   However, unregulated peer-to-peer activity remains harder to track, but regulators are investing in blockchain analytics to close that gap.

Unfortunately, the said peer-peer is being polluted, this in turn will make it more difficult for crypto users especially new entrants.
How can these be checked and users protected from the unknown outcome, in the event that the government tows this part of unfair play?

[TokenTikas]

Unfortunately, the said peer-peer is being polluted, this in turn will make it more difficult for crypto users especially new entrants.
How can these be checked and users protected from the unknown outcome, in the event that the government tows this part of unfair play?

You are absolutely right. We can see that the government only talks about the negative aspects of crypto but what is often overlooked is that crypto has saved many young people from the suffocating unemployment situation. Many have organized their lives a little better by earning from it. The new laws may be good for increasing traceability, because crimes like money laundering need to be prevented. But the problem is that if they are not implemented properly, honest users will suffer the most. Especially in peer-to-peer transactions. Because this is where there is the most room for freedom and if it is suddenly clamped down hard and new entrants will back down in fear.

The government will have to strike a balance between control and freedom. Let crime be curbed through proper supervision, awareness and the use do of blockchain analysis tools, but not make life more difficult for genuine users. Ultimately, only if the rules are implemented in which fairly will crypto have a healthy environment to survive in Nigeria.

[bestcandy]

The Nigerian Government is not out-rightly, saying what they have against Crypto, apart from the fact that it aids money laundering. Whilst that is true there is also another part that is ignored, the fact that crypto has made life worth living for some Nigerian youth who ventured into it. Yet, there are moves to trace crypto transactions, which will most likely work against those found...
Let's look the law is, aiming to stifle crypto.

Nigeria’s New Legal & Regulatory Framework on Crypto Traceability

1.   Investment and Securities Act (ISA) 2025
   Officially recognizes cryptocurrencies and digital assets as securities.
   Brings Virtual Asset Service Providers (VASPs), Exchanges, and Operators under SEC regulation.
   Requires legal entity identifiers (LEIs) and stricter reporting making transactions linked to identifiable entities easier to trace.

2.   SEC’s Transparency Push (2024–2025)
   SEC is demanding weekly/monthly transaction reports from crypto firms.
   Promoting the use of blockchain analytics tools to track wallet activity and identify suspicious flows.
   Stablecoins and new digital assets must enter regulatory sandboxes with built-in oversight.

While there is no single law that says “CBN must trace every crypto transaction”, the combined effect of ISA 2025, MLPPA 2022 (This effectively forces regulated crypto platforms to keep auditable records that regulators can trace).
CBN guidelines(Banks are required to apply KYC/AML checks, enabling traceability of crypto-fiat flows), and SEC reporting rules is that:
•   All regulated crypto activity in Nigeria is traceable (via KYC, reporting, and monitoring).
•   However, unregulated peer-to-peer activity remains harder to track, but regulators are investing in blockchain analytics to close that gap.

Unfortunately, the said peer-peer is being polluted, this in turn will make it more difficult for crypto users especially new entrants.
How can these be checked and users protected from the unknown outcome, in the event that the government tows this part of unfair play?

A country should be ashamed to say that Bitcoin or cryptocurrency will aid money laundering in their country because it show how corrupt the country are and how much their popublic office holders and leaders hate the progress of the country. A country that have integrity and love to their people cannot make such claim.
Bitcoin and cryptocurrency have significants positive impactt to the wellbeing of the people and have contributed so much to economic enhancement.

[Hypnotizer]

How can these be checked and users protected from the unknown outcome, in the event that the government tows this part of unfair play?

The challenge wey dis regulations about crypto space go cause fit be solved  by:

1. Advocating for balance regulations: engaging in meetings with the regulators to make sure say the benefits of cryptocurrencies are being acknowledged as how dem dey help the youth and the country economy. Knowledgeable users, crypto businesses and the crypto stakeholders fit show important information wey dey show how crypto dey improve economic opportunities.
By organizing awareness campaigns to educate the users and also the regulators about the advantages of crypto such as economic empowerment and financial innovativity.

2.User education: Research  and forum discussions about the regulations fit help users use the crypto space safely and protect dem from the unknown outcomes.

3.Strengthening P2P transactions: by developing trustworthy p2p platforms dat will implement strong security measures and transparency and by building community driven ways that will provide feedback on p2p platforms, making sure say users fit share their experiences about scams and bad practices.

4. Using decentralized finance: unregulated options like DeFi go give alternative methods of transactions wey no go dey limited by the regulations and by supporting projects wey focus on decentralization, e go protect users from plenti regulations.

5.Recommendations to regulators: by regularly submitting feedbacks and recommendations to the regulators about Wetin the heavy regulations go do and how dey fit promote innovation and still be addressing regulatory concern e go fit bring solutions to dis plenti regulations and monitoring if the regulators are ready to take feedback from the public. The regulators should also consider doing an assessment about their regulations and the outcome for users to make sure say the regulations are just and fair.
The regulators should collaborate with tech companies wey sabi blockchain analytics to create tools wey fit enforce compliance without compromising user privacy.


Engagement with the regulators and the promotion of user education fit help create a more conducive crypto space in Nigeria.

[SatoPrincess]

Nigeria government is always up to something, you can never predict the next nonsense they will do. OP why don’t you add the link to the source of your post so people like me who are yet to read the news can follow up the story.

[Glowy]

Nigeria government is always up to something, you can never predict the next nonsense they will do. OP why don’t you add the link to the source of your post so people like me who are yet to read the news can follow up the story.

Below are links that you can find this information.

https://www.timesng.com.ng/81457/isa-2025-nigeria-formally-recognizes-cryptocurrency-as-securities-in-new-sec-act-2025/

https://nairametrics.com/2025/08/12/sec-nigeria-pushes-for-full-transparency-in-crypto-transactions-to-combat-fraud/

https://adforensics.com.ng/what-provision-does-the-nigerian-money-laundering-prevention-and-prohibition-act-put-in-place-to-prevent-money-laundering/?

Whist these many sign offs, sound like the government is having a holy romance with crypto adopters in Nigeria, if you read in between the lines, you'd figure there seems to be a desperate need to unveil the identities of crypto transacters.

This is my opinion, you can see differently but this is what i deduce from the many talks on traceable identites and KYC. This means if they wake up tomorrow am print a foot against Crypto traders, they have a database of users they can easily fetch from to undo the people. Nigeria is unpredicatble in these areas,for some reasons it appears the government desperately has a goal to cripple the people  financially especially the youth.