VASP Nigeria: What You Need to Know About Crypto Regulations and Compliance in Nigeria

When you hear VASP Nigeria, a Virtual Asset Service Provider operating under Nigeria’s crypto regulatory framework. Also known as crypto exchange or wallet provider registered with the SEC Nigeria, it refers to any business that handles digital assets like Bitcoin, Ethereum, or stablecoins on behalf of users. In Nigeria, VASPs aren’t optional—they’re mandatory. Since 2022, the Securities and Exchange Commission (SEC) has required all crypto platforms serving Nigerian customers to register, follow anti-money laundering rules, and verify users. This isn’t just paperwork; it’s a survival requirement for any platform wanting to operate legally.

Why does this matter to you? Because Nigeria’s crypto market, one of the most active in Africa, with over 30 million users and daily peer-to-peer trading volumes exceeding $200 million runs on a mix of regulation and loopholes. Many users still trade via P2P apps like Paxful or LocalBitcoins, but platforms that want to scale—like exchanges, custodians, or staking services—must become VASP-compliant, a status that demands KYC, transaction monitoring, and reporting to financial authorities. The SEC doesn’t just want names and IDs—they want real-time data on who’s sending money, where it’s going, and why. This is why so many small crypto startups in Lagos or Abuja shut down: they couldn’t meet the cost or complexity of compliance.

But here’s the twist: regulation hasn’t stopped fraud. In fact, some scammers now pretend to be licensed VASPs to trick people into sending crypto. You’ll find fake websites claiming SEC approval, fake customer support lines, and even fake registration numbers copied from real VASPs. The SEC has published a public list of licensed VASPs—but most users never check it. That’s why posts in this collection dive into real cases: how North Korean hackers exploit unregulated Nigerian P2P networks, how fake airdrops target users who don’t understand licensing, and why platforms like BigONE or Cryptex got flagged for operating without proper oversight. These aren’t abstract risks—they’re daily threats.

If you’re running a crypto business in Nigeria, your VASP registration isn’t a badge—it’s a contract. You’re agreeing to freeze accounts, report suspicious activity, and keep records for five years. If you’re a user, knowing which platforms are licensed means avoiding the ones that vanish overnight. This collection doesn’t just list crypto coins or airdrops. It shows you how the rules in Nigeria affect every trade, every wallet, every token you touch. Below, you’ll find real breakdowns of exchanges that failed compliance, scams disguised as regulation, and the hidden costs of staying legal in a market that’s still figuring itself out.