Cryptocurrencies formally categorized as securities in Nigeria: Crucial information you should understand
**Nigeria Embraces Cryptocurrency Regulation: A Stepping Stone for African Crypto Adoption**
In a significant stride towards formalizing the cryptocurrency industry, Nigeria has taken a progressive approach with its latest digital asset regulations. The Investments and Securities Act (ISA) 2025, signed into law by President Bola Ahmed Tinubu on March 29, 2025, recognizes cryptocurrencies as securities and places them under the regulatory oversight of the Securities and Exchange Commission (SEC).
Under this new legislation, Virtual Asset Service Providers (VASPs), Digital Asset Operators (DOPs), and Digital Asset Exchanges (DAEs) must register and obtain authorization from the SEC to operate legally. This move aims to create a structured and transparent crypto ecosystem in Nigeria. Although national banks retain the authority to restrict transactions involving digital assets, the cautious yet progressive approach to adoption is evident.
The SEC has also partnered with developers to co-create a regulatory framework specifically for stablecoins. This initiative is part of broader efforts to integrate decentralized finance (DeFi) into Nigeria's formal financial system. The SEC aims to foster innovation without compromising security and investor protection.
To promote wider digital financial literacy and support responsible participation in the crypto space, the SEC launched the "Crypto Smart, Nigeria Strong" nationwide awareness campaign. This initiative targets youth across educational sectors and social media, focusing on blockchain education, scam recognition, and long-term informed investing.
In another significant collaboration, the SEC partnered with the digital asset exchange Quidax to provide education on digital assets for Nigerian financial institutions, including commercial banks, asset management firms, pension funds, and securities dealers. This effort aims to drive institutional adoption and deepen understanding of the evolving digital asset ecosystem within traditional finance.
Quidax, an African crypto exchange, has also partnered with Tether to equip over 15,000 individuals and businesses with practical knowledge of bitcoin and stablecoins. Meanwhile, Yellow Card, a leading pan-African exchange, continues to expand its presence in Africa, having appointed Kamogelo Mosime as its new South Africa country manager. Mosime expressed eagerness to advance financial inclusion in Africa via Yellow Card's platform.
Yellow Card secured a Financial Sector Conduct Authority (FSCA)-issued license to operate legally as a financial services provider in South Africa last November. Nedbank, a prominent South African bank, is also introducing innovative contract technology, blockchain, to enhance agricultural operations.
Overall, Nigeria’s 2025 digital asset regulatory updates embody a balanced approach that promotes innovation, security, and investor protection through clear legislation and collaborative partnerships. This positioning makes the country a leading market for crypto adoption in Africa.
- The Investments and Securities Act (ISA) 2025, signed by President Bola Ahmed Tinubu, recognizes cryptocurrencies as securities in Nigeria, subjecting them to the regulatory oversight of the Securities and Exchange Commission (SEC).
- Virtual Asset Service Providers (VASPs), Digital Asset Operators (DOPs), and Digital Asset Exchanges (DAEs) are required to register and obtain authorization from the SEC to operate legally in Nigeria.
- The SEC is collaborating with developers to co-create a regulatory framework for stablecoins, integrating decentralized finance (DeFi) into Nigeria's formal financial system.
- The SEC launched the "Crypto Smart, Nigeria Strong" nationwide awareness campaign to promote digital financial literacy and support responsible participation in the crypto space.
- In a partnership with Quidax, the SEC provides education on digital assets for Nigerian financial institutions, aiming to drive institutional adoption in traditional finance.
- Quidax, an African crypto exchange, partners with Tether to equip over 15,000 individuals and businesses with practical knowledge of bitcoin and stablecoins.
- Yellow Card, a leading pan-African exchange, continues to expand its presence in Africa, with its South Africa country manager, Kamogelo Mosime, expressing eagerness to advance financial inclusion in Africa via the Yellow Card platform.
