Nigeria SEC will regulate virtual asset service providers under new law

PANews April 1 news, according to Bitcoin.com, Nigerian President Bola Ahmed Tinubu recently signed the Nigerian Investment and Securities Act 2025 (ISA) effectively ends the uncertainty surrounding the status of cryptocurrencies. The new bill actually repeals the Investment and Securities Act No. 29 of 2007. This revised Securities Act “formally” recognizes cryptocurrencies as an asset class. This determination not only eliminates the uncertainty surrounding cryptocurrencies, but also means that they are no longer prohibited assets. In addition, law enforcement agencies that have "harassed" people involved in these assets will have to stop such behavior.

Emmotimimi Agama, Director General of the Securities and Exchange Commission of Nigeria (SEC), said the new law gives the SEC more effectively the power to promote innovation and protect investors, repositioning Nigeria, making it a competitive destination to attract domestic and foreign investment. In addition to identifying digital assets and investment contracts as securities, the Investment and Securities Act 2025 also clearly places virtual asset service providers (VASPs) within the regulatory scope of the Securities and Exchange Commission of Nigeria. The law also bans Ponzi schemes and imposes severe penalties, including imprisonment, on the masterminds of the scam.