Nigeria’s Investment and Securities Act (ISA) of 2025 has officially recognized cryptocurrencies as an asset class, introducing a robust regulatory framework that could reshape the country’s digital finance landscape. Discussed on Nairametrics’ YouTube show Drinks and Mics, experts highlighted four regulated crypto players under the new law: Virtual Asset Service Providers (VASPs), Digital Asset Exchanges, Digital Asset Offering Platforms, and Digital Asset Custodians. All must secure licenses from the Securities and Exchange Commission (SEC) to operate legally.
Regulatory Shift and Challenges
The panel, featuring Nairametrics CEO Ugo Obi-Chukwu, Awabah’s Tunji Andrews, Cordros Capital’s Arnold Dublin-Green, and Quidax’s Buchi Okoro, warned that traditional players like registrars and clearing system managers risk obsolescence unless they embrace digitalization and AI-driven automation. Okoro noted that the ISA 2025, unlike the 2007 version, grants the SEC full authority to regulate crypto activities, enhancing investor protection and market stability. “Clear regulations increase liquidity and reduce volatility by attracting responsible players,” he said.
Asset managers, however, were viewed favorably, provided they adopt advanced technologies to stay competitive in the evolving financial ecosystem.
Crypto Smart Initiative
In June 2025, the SEC launched the “Crypto Smart, Nigeria Strong” initiative to develop stablecoin regulations and promote digital literacy among young Nigerians. Targeting schools, universities, and online platforms, the program educates on blockchain basics, scam prevention, and long-term investing. The SEC is also exploring digital asset ETFs, secure wallets for pension funds, and tokenized securities to expand Nigeria’s digital finance ecosystem, emphasizing collaboration, innovation, and trust.
Market Implications
The ISA 2025 addresses enforcement gaps from the SEC’s 2020 crypto framework, fostering investor confidence amid global and local regulatory trends. While tighter rules may stabilize the market, traditional financial entities slow to adapt face survival risks. The SEC’s push for digital innovation positions Nigeria as a leader in Africa’s crypto space, potentially driving broader adoption and economic growth.
