Nigeria has adopted a legal framework to regulate and supervise cryptocurrencies, strengthening financial market oversight and promoting transparency.
Nigeria, which is leading the adoption of cryptocurrencies in Africa, has taken a decisive step towards regulating the sector with the Approval of the Investment and Securities Law (ISA) 2025.
This new law, promoted by the National Assembly, seeks Regulate and supervise cryptocurrency operations on exchange platforms and establish innovative and efficient mechanisms to combat potential illicit operations.The approval of this new regulation in Nigeria responds to the growing popularity of cryptocurrencies as a financial tool in a country where 40% of the population uses alternative banking services.
PREPARE YOUR WALLETThe regulations follow years of regulatory debate, marked by the Central Bank of Nigeria's (CBN) ban on cryptocurrencies in 2021, which prevented financial institutions from facilitating transactions with these digital assets. Despite this restriction, the use of cryptocurrencies remained prevalent, particularly as a tool to protect savings against inflation and send remittances without incurring high fees.
With the implementation of ISA 2025, the government seeks to establish a clearer environment for the industry's development, while also raising tax revenue from the cryptoasset sector.
Nigeria regulates cryptocurrencies with the ISA Act of 2025
Nigerian President Bola Ahmed Tinubu has signed into law the Investment and Securities Act (ISA) of 2025, marking a significant shift in Nigeria's financial landscape. legislation It repeals the previous Law No. 29 of 2007 and establishes a renewed legal framework for the capital market, including for the first time the explicit recognition of digital assets as securities.
With these reforms, Nigeria seeks to align its financial operations with international standards, promote investor confidence, and foster sustainable economic growth.
TRADE WITH STABLECOINSThe new law also grants the Securities and Exchange Commission (SEC) greater regulatory powers, allowing it to more effectively oversee financial market activities, including digital asset-based platforms. This development comes at a critical time, as Nigeria positions itself as one of the leading countries in cryptocurrency adoption globally.
The ISA 2025 It seeks to protect investors and establish a regulatory environment that encourages technological innovation and attracts both local and foreign investment.
A renewed legal framework for the financial market
The Investment and Securities Act 2025 introduces a series of provisions designed to modernize the Nigerian financial market. Among the most notable changes is the classification of stock exchanges into two categories: composite and non-composite. Composite exchanges will be able to list all types of securities, while non-composite exchanges will be limited to specific categories.
In addition, new provisions have been included regarding financial market infrastructures, such as clearing houses and central counterparties. These measures are designed to mitigate systemic risks and ensure greater stability in financial transactions. Another key aspect is the mandatory introduction of the Legal Entity Identifier (LEI), which will improve transparency in market transactions.
BUY BITCOINThe law also addresses long-standing problems such as Ponzi schemes, expressly prohibiting them and imposing severe penalties on those who promote them. With all these measures, the Nigerian government reinforces its commitment to investor protection and stability.
Legal recognition for cryptocurrencies
For the first time, Nigeria explicitly recognizes digital assets as securities under its legal framework. According to local media, this means that all platforms operating in cryptocurrencies must register with the SEC and comply with strict regulatory requirements.
The law also classifies virtual asset service providers (VASPs) and digital asset operators (DAOPs) as subject to direct oversight by the regulator.
LINK CARD AND EARNIn conclusion, the enactment of the Investment and Securities Act of 2025 in Nigeria marks a new era for the country's financial system, recognizing and integrating digital assets into the national regulatory framework. With the increased powers granted to the SEC in this act and provisions designed to foster transparency and technological innovation, this legislation has the potential to profoundly transform the nation's economic landscape.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
