Nigerian Crypto Exchanges Regain Banking Access One Year After Regulatory Recognition

Nigerian cryptocurrency exchanges have reconnected to the formal banking system, one year after securing regulatory approval, marking a significant milestone for the country’s digital asset industry.

In an interview with Nairametrics, Moyo Sodipo, Chief Operating Officer of Busha, described the development as a turning point for platforms that once operated largely outside traditional finance.

“It’s been a year of learning, collaboration, and understanding,” Sodipo said. “The biggest change is that we are finally able to once again access the formal banking network in Nigeria.”

From Restriction to Recognition

The breakthrough follows the Securities and Exchange Commission’s (SEC) decision in August 2024 to grant Approvals-in-Principle to Busha and Quidax, two of the country’s leading exchanges. The approvals gave the firms legal recognition as crypto trading platforms—an important precursor to full registration.

Until then, the industry had been constrained by a 2021 Central Bank of Nigeria (CBN) directive that barred financial institutions from servicing crypto-related businesses. Exchanges were forced to adopt peer-to-peer (P2P) models and other workarounds to sustain operations.

Now, Sodipo says banking institutions that once avoided crypto players are “happy to welcome us into their offices again.”

A Boost for Confidence and Compliance

The SEC’s move has been widely seen as a catalyst for renewed confidence, bridging the gap between crypto firms and the mainstream financial sector. Industry observers argue that the approvals have encouraged greater transparency, compliance, and financial inclusion in Nigeria’s growing digital asset market.

“We no longer need to be in the shadows or depend solely on P2P,” Sodipo noted. “Now we can openly provide crypto and digital asset services to Nigerians.”

What You Should Know

• In May 2022, the SEC introduced the Rules on Virtual Asset Service Providers (VASPs) to provide regulatory clarity.
• To integrate existing players, the Commission rolled out the Accelerated Regulatory Incubation Program (ARIP) for already-operating firms and the broader Regulatory Incubation (RI) Program to test new models and products.
• The first set of companies approved under ARIP—including Busha and Quidax—will help shape future policy development in Nigeria’s crypto space.

With banking access restored, analysts say Nigerian exchanges are now positioned for sustainable growth, deeper collaboration with financial institutions, and wider adoption of digital assets across the economy.