As Crypto Regulation Tightens in Nigeria, TradePal AI Is Building the Missing Compliance Layer

Nigeria’s cryptocurrency market has grown rapidly over the past few years. Between July 2024 and June 2025, an estimated $92.1 billion in digital asset value moved through the country. Despite this scale, much of the activity does not take place on regulated exchanges.

A large portion of trading happens through over-the-counter arrangements, where individuals exchange crypto directly with one another. These transactions are commonly coordinated through messaging platforms such as WhatsApp. Payments are confirmed with screenshots, conversations are fragmented, and records are rarely preserved in an organised manner.

For a long time, this informal structure supported fast and flexible trading. Participants focused on completing deals quickly, often without considering long-term documentation. Trust and reputation replaced formal verification processes.

However, this approach is becoming increasingly risky.

As Nigerian regulators intensify oversight of digital asset transactions to manage foreign exchange volatility and improve financial transparency, traders are being asked to provide clearer records of their activities. Banks and regulatory agencies now expect detailed explanations of where funds originate, how they move, and whether they are legitimate.

TradePal AI was founded in 2025 by Ayoyinka Adebiyi and Femi Adegolu. Rather than operating as a trading platform, the company positions itself as a regulatory technology provider focused on documentation and reporting. The startup does not facilitate crypto transactions. Instead, it provides infrastructure that allows traders to organise their financial activities in ways that align with regulatory standards.

According to Adegolu, the company aims to connect market participants with policymakers and regulators by improving transparency in the digital asset ecosystem. The platform functions as a digital ledger and compliance management system. It allows users to record transactions as they occur, track trading activity over time, and reconcile payments.

By consolidating scattered conversations and informal agreements into a centralised system, TradePal helps traders build reliable transaction histories that can be referenced when required. Building Compliance Around Risk Management and Tax Reporting, TradePal’s platform is designed around two primary functions, risk assessment and tax compliance.

Transaction Risk Assessment

Every transaction recorded on the platform contributes to a user’s overall activity profile. Over time, this data helps reveal trading patterns and identify potential compliance risks. For high-volume users, TradePal offers wallet-screening functionality. Before completing a deal, traders can check a counterparty’s wallet against a global database maintained under confidentiality agreements.

Based on this analysis, the system generates a risk profile and flags wallets that may be associated with financial crimes, security breaches, or sanctioned activities. This process helps traders reduce the likelihood of engaging in transactions that could attract regulatory scrutiny.

Tax Compliance and Liability Estimation

With updated tax regulations taking effect on January 1, 2026, digital asset traders in Nigeria are now required to comply with stricter reporting standards. To support this transition, TradePal introduced an automated tax calculation tool. Users can input their trading volume and profit margins to estimate their potential liabilities.

The system covers major tax categories, including personal income tax, company income tax, and capital gains tax. According to Chief Executive Officer Deborah Ojengbede, the tool is also designed for freelancers and other digital economy workers who need to understand their tax obligations under the new framework.

Designing Technology Around Existing Trading Habits

One of TradePal’s biggest challenges was encouraging traders to adopt compliance tools in a fast-paced environment. OTC trading is driven by speed. Transactions are often completed within minutes, and any additional steps that slow the process are likely to be ignored.

Initial attempts to rely on web dashboards and manual data entry proved ineffective. Many traders were unwilling to interrupt their workflow to log transactions. The company responded by integrating its system into WhatsApp, where most OTC trading activity already takes place.

TradePal developed a chatbot that functions as a background documentation assistant. Traders can send voice notes or short text summaries of their transactions to the bot. Using artificial intelligence, the system extracts relevant information, interprets transaction details, and stores them in a structured ledger. This approach allows traders to continue operating within familiar platforms while automatically building compliant records.

Why Global Crypto Management Tools Fall Short in Nigeria

International crypto tax and portfolio management platforms such as Koinly and CoinTracker dominate markets in North America and Europe. These tools are designed primarily for users who trade on centralized exchanges and operate within Western regulatory systems.

In Nigeria, trading patterns are different. OTC transactions are more common, financial documentation is less formal, and tax rules are locally specific. As a result, many Nigerian users struggle to adapt global platforms to their needs. Features designed for exchange-based trading often fail to capture the realities of peer-to-peer transactions.

TradePal AI was built specifically for this environment. Its systems reflect local regulations, informal trading practices, and Nigeria’s evolving tax structure. This localised approach is particularly important in a market where OTC trading reportedly grew by more than 106 per cent in 2024, according to research by Quidax.

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Pricing Strategy for a Diverse User Base

Nigeria’s crypto ecosystem includes casual traders, freelancers, full-time merchants, and large-scale operators. TradePal’s pricing model is designed to accommodate this diversity. The platform offers a seven-day free trial, followed by subscription plans categorised as Basic, Premium, and Enterprise.

Monthly fees range from $5 to $150, depending on transaction volume and feature access. According to Ojengbede, the company’s goal is to make the platform accessible to users at different stages of their trading journey while providing advanced tools for larger businesses.

Funding and Investment in Platform Security

In January 2026, TradePal AI raised $50,000 from undisclosed angel investors. The funding marked an important step in the company’s early development. The startup says it is using the capital primarily to strengthen its security infrastructure. Key areas of investment include data encryption, secure storage systems, access controls, and platform stability.

Given the sensitive nature of financial and transaction data, maintaining strong security standards is essential for building user trust and ensuring regulatory credibility.

Positioning for a More Regulated Crypto Market

Nigeria’s informal crypto economy has long relied on speed, personal relationships, and limited documentation. As regulatory oversight increases, this model is becoming less sustainable. Financial institutions now require detailed records. Regulators expect traceability. Tax authorities demand transparency.

By converting informal WhatsApp conversations into structured financial records, the company aims to make compliance a routine part of OTC trading. Its long-term bet is that regulatory alignment will become a basic requirement for operating in Nigeria’s digital asset market.

When that shift becomes unavoidable, TradePal wants to be the system traders already depend on to remain compliant, credible, and operational.