Written by May 2nd, 2025. NYCPC News Updates
In a landmark move, Nigeria has officially recognized Bitcoin and other digital assets as securities under the newly enacted Investment and Securities Act (ISA) 2025. Signed into law by President Bola Ahmed Tinubu, this legislation marks a significant shift in the country’s approach to cryptocurrency regulation, aiming to provide a clear legal framework for digital assets and enhance investor protection.
The ISA 2025 replaces the outdated 2007 Act, expanding the definition of securities to include virtual assets and investment contracts. This change brings cryptocurrencies under the regulatory purview of the Securities and Exchange Commission (SEC), which is now empowered to oversee Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and Digital Asset Exchanges (DAEs).
Under the new law, all entities dealing with digital assets are required to register with the SEC and comply with its guidelines, which include stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. The legislation also introduces severe penalties for fraudulent activities, such as Ponzi schemes, with violators facing fines of at least 20 million Naira (approximately $12,430) and up to 10 years in prison.
This regulatory overhaul is expected to foster greater transparency and trust in Nigeria’s digital asset market, potentially attracting more investors and encouraging innovation within the sector. By providing legal clarity, the government aims to curb illicit activities and protect investors from fraudulent schemes that have plagued the crypto space in the past.
Nigeria’s decision to classify cryptocurrencies as securities aligns with global trends, as countries worldwide grapple with the challenges and opportunities presented by digital assets. As the nation positions itself as a forward-thinking player in the global financial landscape, the success of this regulatory approach will depend on effective implementation and ongoing engagement with industry stakeholders.
Stay tuned to NYCPC News for more updates on this developing story.