Nigeria has taken a landmark step in cryptocurrency regulation with the signing of the Investments and Securities Act 2025 (ISA 2025) by President Bola Ahmed Tinubu. This move officially recognizes digital assets as an asset class and provides Nigeria with a clear legal framework for crypto trading.
A Long-Awaited Recognition
Before ISA 2025, Nigeria’s crypto industry operated in a legal gray area. While the Central Bank of Nigeria (CBN) had placed restrictions on banks facilitating crypto transactions, people continued to trade via peer-to-peer (P2P) exchanges. This new law regulates digital assets as securities, allowing traders and investors to avoid legal prosecution.
SEC Nigeria Takes the Lead
The SEC Nigeria now has full authority to regulate the crypto space. Director-General Emomotimi Agama stated that the new law enables the commission to foster innovation, protect investors, and attract both local and foreign investments.
Nigeria's Evolving Stance on Crypto
Nigeria’s relationship with crypto has seen various changes over the years. Bitcoin was first mentioned in 2015 following a crash in oil prices and the subsequent depreciation of the naira. In 2021, the CBN ordered banks to shut down crypto-related accounts, forcing traders to rely on P2P transactions. In 2023, under President Tinubu’s administration, the country softened its stance, paving the way for the adoption of ISA 2025.
With the implementation of ISA 2025, Nigeria has moved from a restrictive to a structured regulatory approach, paving the way for legitimacy and growth in the country's crypto market.
