Is crypto betting legal in Nigeria?

Crypto betting in Nigeria exists in a legal gray area. While not explicitly legal, it is not illegal either. The primary regulatory body for cryptocurrencies is the Securities and Exchange Commission (SEC), which in 2023 classified all digital crypto assets as securities. This move was a significant step towards a more regulated environment.

Previously, in 2021, the Central Bank of Nigeria (CBN) had prohibited banks from servicing crypto exchanges, but this directive was rescinded in December 2023, allowing banks to open accounts for licensed crypto firms. The Finance Act of 2023 imposes a 10% capital gains tax on the disposal of digital assets, including cryptocurrencies, though enforcement remains a challenge.

The use of cryptocurrencies for direct payment for goods and services is still prohibited. This complex and evolving regulatory landscape means that while crypto betting is not explicitly authorized, it is also not actively prosecuted, allowing many Nigerians to participate through offshore platforms.