Nigeria has taken a significant step in cryptocurrency regulation by passing the Investments and Securities Act (ISA) 2025. This law recognizes cryptocurrencies as assets, ending years of legal uncertainty.
A Long-Awaited Recognition
Before ISA 2025, Nigeria's crypto industry operated in a legal gray area. Despite restrictions from the Central Bank of Nigeria (CBN), people continued trading via peer-to-peer (P2P) exchanges. The new law legalizes digital assets, allowing citizens to engage in trading and investment freely.
Strengthening SEC Nigeria's Role
According to the new law, the Securities and Exchange Commission (SEC) of Nigeria has gained more authority to regulate the crypto industry. Director-General Emomotimi Agama noted that the law would help foster innovation and protect investors.
Changes in Legislation
The law introduces several key changes:
* Crypto Assets as Securities: cryptocurrencies are now officially classified as investment contracts. * Regulation of Virtual Asset Service Providers (VASPs): crypto exchanges and wallet providers must register with the SEC. * Crackdown on Ponzi Schemes: strict penalties are introduced for fraudulent activities. * Stronger Investor Protections: the legal framework will ensure greater protection against scams.
The adoption of ISA 2025 significantly alters the status of the cryptocurrency industry in Nigeria, opening up new opportunities for innovation and increasing market transparency.
