Nigeria’s crypto sector is facing great frustration as regulators slow down the approval of operational licences for virtual asset service providers (VASPs). Almost a year after the Securities and Exchange Commission (SEC) issued its first provisional licences under the Accelerated Regulatory Incubation Programme (ARIP), no further approvals have been finalized, leaving several exchanges and blockchain startups waiting for clarity.
In August 2024, two local exchanges , Busha and Quidax , received provisional licences, an action many believed marked the beginning of a broader regulatory rollout. The programme was designed to allow qualified operators to function under temporary approval while the SEC completed full licensing procedures. However,as of November 2025, that process appears to have stalled, creating uncertainty across the industry.
Under Nigeria’s Investment and Securities Act (2025), all VASPs are required to maintain physical offices in the country, implement strict anti-money laundering protocols, and meet capital adequacy standards before full authorisation. The SEC also works in coordination with the Central Bank of Nigeria (CBN) and the Office of the National Security Adviser (ONSA) , two agencies whose additional review layers have contributed to what many firms describe as a “standstill” in processing.
Industry stakeholders say the freeze is stifling innovation and investor confidence. “It’s been over a year since the first approvals, and yet, most exchanges are still waiting,” one operator told TechCabal. “Without a clear licensing path, no one knows where they stand.”
The delays come as the Nigerian government prepares to implement a crypto taxation framework starting in January 2026. The policy will impose levies on trades, staking rewards, and transfers involving digital assets. But with fewer than five licensed exchanges, questions remain about how tax enforcement will work in such a limited regulatory environment.
So far, the SEC has not issued an official explanation for the prolonged process or provided timelines for full licence issuance. As the country moves closer to enforcing crypto taxation, the industry remains caught between compliance ambitions and a lack of regulatory execution.
Read also: Africa’s Crypto Boom: How Nigeria and South Africa Are Rebuilding Finance
