Nigeria's Latest Crypto Regulation: What Exchanges Need to Know

Starting January 1st, Nigeria is rolling out a significant shift in how it handles cryptocurrency transactions. The new tax law mandates that all virtual asset providers must connect user transactions directly to tax identification numbers and national ID records.

Here's what's changing:

Exchanges operating in Nigeria will need to file comprehensive customer data and transaction details with local tax authorities. This isn't optional—it's a requirement baked into the new framework. The approach moves away from traditional blockchain surveillance methods toward a more direct identity-based model.

What this means for the market: The shift emphasizes regulatory compliance over on-chain monitoring. Virtual asset providers now operate under stricter identity verification and reporting obligations, effectively creating a bridge between crypto activities and official tax records.

For anyone operating in the Nigerian crypto space, these changes demand immediate attention to compliance infrastructure. The emphasis on identity verification and customer data reporting signals where emerging markets are heading when it comes to crypto regulation.