Nigeria Reaches Milestone in Cryptocurrency Regulation with the ISA 2025

The Investment and Securities Act (ISA) 2025, signed into law by Nigerian President Bola Tinubu in early April 2025, formally recognises cryptocurrencies and digital assets as securities, ushering in a new regulatory era for Africa’s largest economy. This historic step resolves over a decade of uncertainty surrounding the legal status of digital assets, placing virtual assets and related service providers under the oversight of Nigeria’s Securities and Exchange Commission (SEC).

According to the Chainalysis 2024 report, Nigeria ranks second globally in cryptocurrency adoption, behind only India, with the Sub-Saharan region processing approximately $125 billion in on-chain transactions between July 2023 and June 2024. Dr. Emomotimi Agama, Director-General of the SEC, stated that the ISA 2025 reflects their commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-thinking provisions, the new law empowers the SEC to foster innovation, enhance investor protection, and position Nigeria as a competitive destination for both domestic and foreign investment. The legislation categorically defines platforms dealing with digital assets and strengthens the financial market infrastructure, including clearing houses and custodial trading entities.

The ISA 2025 marks a significant advancement over the previous ISA 2007, providing an explicit legal framework for digital assets, bolstering the Investor Protection Fund (IPF), and imposing stringent penalties on pyramid scheme operators, including a minimum fine of 20 million naira (approximately $12,500) or a 10-year prison sentence. The law also enables state and local governments to issue securities to finance infrastructure projects while enhancing market transparency through the mandatory use of Legal Entity Identifiers (LEI) in capital market transactions. Experts suggest that this regulatory framework could elevate Nigeria to a leading role in the digital economy, attracting both local and international investors.

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ISA 2025: Nigeria Embraces Crypto Regulation in Landmark SEC Reform

Nigeria crypto regulation 2025 begins with SEC declaring cryptocurrencies as securities under ISA 2025 law.

CoinfomaniaCoinfomania News Room

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ISA 2025: New vista for capital market regulation

The new Investments and Securities Act (ISA) is expected to strengthen the Securities and Exchange Commission (SEC) and grant it expanded power to combat insider trading, market manipulation and fraudulent investment schemes

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ISA 2025: Nigeria formally recognizes cryptocurrency as securities in new SEC Act 2025

Nigeria has formally recognized cryptocurrency and other virtual assets as securities for the first time. President Bola Tinubu’s recent enactment

NairametricsIsrael Ojoko

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ISA 2025 to Stimulate Nigeria's Economic Growth

The SEC highlights how the new Investments and Securities Act (ISA) 2025 will enhance capital market opportunities and support economic expansion.