Nigeria’s Securities and Exchange Commission (SEC) has officially updated its regulatory framework governing Virtual Asset Service Providers (VASPs). The new rules require local and international digital currency exchanges targeting Nigerian users to establish active operational offices in the country and obtain a provisional operating license.
### Impact on Peer-to-Peer (P2P) Users
With the licensing updates, platforms are forced to enhance their KYC and AML checks. This includes mandatory National Identification Number (NIN) verification for all trading accounts. Unregistered OTC desks are facing strict enforcement actions, which makes trading on licensed platforms like Quidax and Luno the safest option for retail buyers.
### Compliance Checklists for Local Traders
* Always verify the registration certificate of any digital platform in Nigeria.
* Pay taxes on realized capital gains under regional tax reporting frameworks.
* Never include terms like ‘crypto’, ‘BTC’, or ‘USDT’ in standard bank wire comments, as commercial bank compliance filters remain highly sensitive.
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