Crypto Exchanges Reconnect with Nigeria’s Banking System, Enhancing Transaction

Nigerian cryptocurrency exchanges have regained access to the country’s formal banking network, marking a significant milestone in the nation’s digital finance landscape.

This development follows the Securities and Exchange Commission’s (SEC) issuance of Approval-in-Principle to Busha and Quidax in August 2024, granting them legal recognition as crypto trading platforms.
Prior to this regulatory shift, Nigerian crypto exchanges faced challenges accessing banking services due to the Central Bank of Nigeria’s (CBN) 2021 directive restricting financial institutions from servicing crypto-related entities.

This restriction forced platforms to rely on peer-to-peer (P2P) models and workaround solutions. However, with the SEC’s approval, exchanges like Busha have reconnected to the formal banking network, facilitating smoother transactions for users.
Moyo Sodipo, Chief Operating Officer of Busha, described the past year as transformative for the industry, emphasizing the importance of regulatory clarity and collaboration in driving the sector forward.

He highlighted that the ability to access the formal banking system has been a game-changer for crypto operators in Nigeria.

This regulatory progress aligns with the increasing adoption of cryptocurrencies in Nigeria. Activities such as paying bills, topping up mobile credits, and making retail purchases are now routinely handled through cryptocurrency platforms, reflecting a shift from viewing crypto as a speculative investment to recognizing its practical utility in everyday transactions.
The SEC’s approval also positions Nigeria as a leader in crypto innovation within Sub-Saharan Africa, alongside countries like South Africa, Ethiopia, and Kenya.

By addressing challenges and embracing the practical utility of blockchain technology, Nigeria is setting the stage to be a global hub for digital finance.

In summary, the reconnection of Nigerian crypto exchanges to the formal banking system represents a significant step towards integrating digital assets into the mainstream financial ecosystem, enhancing transaction ease, and fostering innovation in the country’s financial sector.