Cryptocurrency exchanges in Nigeria required to disclose client and transaction data

Key points:

• Nigeria has introduced a system for tracking cryptocurrency transactions linked to tax and national IDs of citizens.
• Cryptocurrency exchanges are required to disclose client, transaction, and suspicious transfer data to authorities.
• Violations of these requirements carry significant fines and the risk of losing their license.

Nigeria has begun tightening its control over the cryptocurrency market. The country's authorities have launched a system for tracking crypto transactions and linking them to specific individuals as part of the new Tax Administration Act, enacted in 2025.

The reform is aligned with international regulations. The Cryptoasset Reporting Framework, developed by the Organisation for Economic Co-operation and Development (OECD), is being implemented on January 1, 2026, and authorizes countries to collect, analyze, and share data on cross-border transactions involving digital assets.

How authorities link cryptocurrency to real people

Under the new tax regime, cryptocurrency transactions in Nigeria can now be directly linked to individuals using two identifiers – a TIN and a NIN.

A TIN (tax identification number) is issued to individuals and companies by the Nigerian Revenue Authority. It is used for taxpayer records, compliance monitoring, and tax compliance.

A NIN is a national identification number linked to an individual's biometric data, including fingerprints and facial image. All this information is stored in a government-issued identity database.

All registered virtual asset service providers are required to collect the TIN and NIN of their clients and transmit this data along with transaction information. This allows the state to track the crypto activity of specific individuals without complex and expensive blockchain analysis tools.

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Special attention is paid to suspicious transactions. Cryptocurrency exchanges are required to proactively identify large or questionable transactions and report them to both tax authorities and the Nigerian Financial Intelligence Unit. Client and transaction data must be stored for at least seven years from the last transaction.

Failure to comply with these requirements carries severe penalties. Fines can reach 10 million naira (approximately $7,000) in the first month of violation, and an additional 1 million naira for each subsequent month. Furthermore, exchanges risk temporary suspension or permanent loss of their license.

India previously tightened KYC requirements for crypto platforms. The FIU required exchanges to verify a user's physical presence during registration through a live selfie with eye and head tracking.