News
by Soumen Datta
April 2, 2025
Signed into law by President Bola Ahmed Tinubu, this legislation removes past uncertainties and places virtual asset service providers (VASPs) under the regulatory oversight of SEC Nigeria.
Nigeria has taken a landmark step in cryptocurrency regulation. With the signing of the Investments and Securities Act (ISA) 2025 by President Bola Ahmed Tinubu, the country has officially recognized cryptocurrencies as an asset class, according to Business Day, Nigeria.
This move ends years of regulatory uncertainty and establishes a clear legal framework for digital assets.
The new law strengthens the Securities and Exchange Commission (SEC) of Nigeria, giving it full authority to regulate the crypto industry. It also criminalizes Ponzi schemes and introduces penalties for fraudulent investment schemes.
Before ISA 2025, Nigeria’s crypto industry operated in a legal gray area. While the Central Bank of Nigeria (CBN) had placed restrictions on banks facilitating crypto transactions, people continued to trade via peer-to-peer (P2P) exchanges. This left the industry vulnerable to law enforcement crackdowns and inconsistent policies.
With the new law, the government has taken a decisive step toward crypto regulation, recognizing digital assets as securities. This means that cryptocurrencies are no longer banned assets, and individuals can engage in trading and investment without fear of harassment from authorities.
The SEC Nigeria now has a stronger mandate to regulate the crypto space. Director-General Emomotimi Agama stated that the new law allows the SEC to foster innovation, protect investors, and attract local and foreign investments.
The legal clarity will reportedly encourage fintech startups, blockchain developers, and institutional investors to engage with Nigeria’s crypto market.
Why is this important?
“By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more efficiently and reposition Nigeria as a competitive destination for local and foreign investments,” said Emomotimi Agama, Director-General, SEC.
Nigeria’s relationship with crypto has evolved dramatically over the years.
Now, with ISA 2025, Nigeria has moved from a restrictive approach to a structured regulatory framework.
The crypto industry in Nigeria is now on a path toward legitimacy and growth. How the SEC implements these regulations in the coming months will determine the long-term impact of this historic decision.
This development follows Nigeria's $81.5 billion lawsuit against Binance in February, alleging the exchange played a role in devaluing the Naira.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
Author
Soumen Datta
Soumen is an experienced writer in cryptocurrencies, DeFi, NFTs, and GameFi. He has been analyzing the space for the last several years and believes there is a lot of potential with blockchain technology, even though we are still at an early stage. In his spare time, Soumen enjoys playing his guitar and singing along. Soumen holds bags in BTC, ETH, BNB, MATIC, and ADA.
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