After years of skepticism and restrictions, the Nigerian government has taken a significant step by officially regulating crypto, marking a shift in its stance toward digital assets. The country’s president, Bola Ahmed Tinubu, has recently signed into law the Investments and Securities Act (ISA) 2025, which repeals that of 2007.
Nigeria Officially Recognizes Crypto
A major highlight of the new framework is its recognition of crypto and investment contracts as securities. This move brings crypto-related businesses, such as exchanges, under the Securities and Exchange Commission’s (SEC) regulatory oversight.
The new framework, introduced by the Nigerian SEC alongside the Central Bank of Nigeria (CBN), aims to monitor and control digital asset transactions. Under the new guidelines, crypto exchanges must register with the relevant authorities and comply with anti-money laundering (AML) and know-your-customer (KYC) policies.
SEC Director-General Emomotimi Agama welcomed the legislation, describing it as a “transformative step for the capital market” that will foster innovation while protecting investor interests. The agency believes the move will grow the Nigerian fintech and blockchain sectors.
Additionally, banks and financial institutions will now have more precise directives on handling transactions related to crypto assets. This will reduce the uncertainty that has plagued the industry since the CBN initially banned crypto-related banking transactions in 2021.
What Users Should Expect
Nigerian crypto users can expect a more secure environment under regulatory oversight. This means that users can now seek immediate assistance from law enforcement agencies if they experience unauthorized transactions, theft, or scams relating to their digital assets. Notably, several ponzi-like crypto projects have tainted the ecosystem in the name of memecoins.
Users will benefit from smoother access to crypto services and enhanced banking integration, eliminating the previous necessity of using VPNs to access crypto sites. With traditional financial institutions aligning their operations with the new legal framework, accessing exchanges, wallets, and other crypto services will become more straightforward and secure.
Additionally, crypto users in Nigeria should be prepared for higher transparency in their financial dealings, as crypto earnings may become subject to taxation. The SEC said it would ensure that all eligible transactions will be brought under the tax net, as recently reported by CryptocurrenciesToWatch.
