Nigeria has taken an important step towards integrating cryptocurrency regulations into law with the signing of Nigeria’s Investment and Securities Act (ISA) 2025.
Cryptocurrencies are officially recognized as asset classes
The Nigerian Investment and Securities Act (ISA) 2025 was recently signed into law by President Bora Ahmed Tinubu, effectively ending the uncertainty surrounding the cryptocurrency situation. According to Ophi Rume, a local crypto advocate and educator, the amended securities law “officially” recognizes cryptocurrencies as an asset class.
This recognition not only ends uncertainty about cryptocurrency, but also means that assets are no longer banned. Additionally, Rume said law enforcement agencies that are “harassing” people involved in these assets must be stopped.
Room’s remarks came days after Nigeria’s Securities and Exchange Commission (SEC) said it would effectively override 29 of Investment and Securities Act 2007. He added that Nigeria has been relocated as a competitive destination for local and foreign investment.
In addition to recognizing digital assets and investment agreements as securities, ISA 2025 also explicitly places virtual asset service providers (VASPs) under the regulatory scope of SEC Nigeria. The law also threatens and threatens severe penalties, including prison conditions for scheme promoters.
The proposed penalty for the Ponzi scheme is welcomed by players in the crypto industry in Nigeria, but Rume warns that this section must be revised to ensure that the financial penalty is ongoing.
“This is because a 20 million naira ($13,000) fine might seem small for a platform that has scam many people from the huge amount of money in the dollar. For example, $500,000. The fines are easily repealed.”
Overall, Rume said SEC Nigeria should encourage innovation in the crypto market and provide tax-free leave to foreign crypto companies seeking to enter the country.
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