Nigerian President Bola Ahmed Tinubu signed the Investments and Securities Act, classifying digital assets as securities.
Regulating Crypto Assets as Securities in Nigeria
The Investments and Securities Act 2025, signed by President Bola Tinubu, formally recognizes digital assets as securities. This empowers the Nigerian SEC to regulate such assets with enhanced oversight responsibilities.
New Compliance Costs for Virtual Asset Providers
The new legislation emphasizes transparency and investor safety, affecting VASPs who must now meet stringent compliance costs. This is expected to consolidate the market towards well-capitalized firms.
Formalizing Crypto Markets Post-CBN Ban
Previously, the 2021 CBN ban on crypto transactions led to increased P2P trading. The new act seeks to formalize the crypto market within the framework of Nigerian financial regulations. With Nigeria's high crypto adoption rate, regulated oversight is anticipated to offer stability and growth opportunities.
The signed law provides legal clarity for the cryptocurrency market in Nigeria and creates conditions for attracting both local and international investments.
