The Nigerian Securities and Exchange Commission (SEC) has announced that cryptocurrencies and other digital assets are now officially classified as securities under the new Investments and Securities Act (ISA) 2025. This new law, signed by President Bola Ahmed Tinubu in March 2025, aims to bring digital asset activities under proper regulation in Nigeria. With this, the SEC now has full power to oversee and control how cryptocurrencies are used, traded, and managed in the country.
The new ISA 2025 replaces the old law from 2007 and updates Nigeria’s financial regulatory framework to match global standards. By adding digital and virtual assets to its jurisdiction, the SEC hopes to provide better protection for investors and bring more order to a growing sector that has remained largely unregulated for years. The development comes as Nigeria continues to establish itself as one of the biggest crypto markets in Africa, especially among young people and tech-savvy entrepreneurs.
According to the new law, every company or individual involved in cryptocurrency business in Nigeria must now register with the SEC. They are also required to get the necessary licences before continuing their operations. Those who refuse to follow the rules risk facing heavy penalties. These penalties could include fines and even jail time, depending on the severity of the offence.
The decision by the SEC is partly a response to recent fraud cases involving digital assets. One major case is the collapse of the CBEX Ponzi scheme, which reportedly cost Nigerian investors more than ₦1.4 trillion. Many Nigerians had invested in the platform with hopes of making quick profits, only to lose everything when it crashed. Incidents like this have pushed the SEC to step in and take more control of the sector.
While some people in the crypto and tech industry have welcomed the move as a way to make digital assets safer and more trustworthy, others are concerned about the effect it may have on innovation and ease of doing business. Some fear that too many rules might scare off investors and startups who are trying to build solutions using blockchain and crypto technology. Experts are now advising companies and crypto platforms to get legal advice and understand the new requirements so they don’t fall into trouble.
Apart from licensing, the SEC also has the authority to investigate and shut down any unregistered crypto operations. In the past few weeks, the Commission has warned the public about new Ponzi-style schemes and fake investment platforms that promise quick returns using digital currencies. It has encouraged Nigerians to be very careful and to verify whether a company is registered before putting money into any crypto-related investment.
The regulation is coming at a time when Nigeria is being recognised globally as a key player in Africa’s fintech and blockchain industry. With this classification of digital assets as securities, the government says it wants to build trust, attract investors, and make the environment safer for all users—especially ordinary Nigerians who may not fully understand the risks of digital trading.
As things continue to unfold, the real test will be how well the law is implemented and whether it helps build a more stable and trusted crypto sector without killing the innovation that has made Nigeria one of the most active crypto markets in the world.
