The Traffic

Nigeria Declares Bitcoin & Other Virtual Assets as Official Securities in Bold New Law

By Achimi Muktar

In a groundbreaking policy shift that could reshape Africa’s digital economy, Nigeria has officially recognized cryptocurrencies and other virtual assets as securities under its newly signed Investment and Securities Act (ISA) 2025.

Signed into law by President Bola Tinubu, the ISA 2025 ushers in a new era for Nigeria’s fintech landscape—one that gives crypto a legal home after years of regulatory limbo.

The Beginning of a Regulated Crypto Era

The legislation empowers the Securities and Exchange Commission (SEC) to regulate and license Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and Digital Asset Exchanges—effectively placing crypto under the same legal framework as stocks, bonds, and commodities.

Section C of the Act defines securities exchanges as organized platforms that match buyers and sellers of “securities, virtual assets, commodities, or financial instruments.” For the first time in Nigerian history, Bitcoin, Ethereum, and stablecoins have legal recognition as part of the country’s formal capital markets.

This development aims to strengthen investor protection, curb illicit financial flows, and bring much-needed transparency to Nigeria’s vibrant crypto space.

From Bans to Blockchain: How Nigeria Got Here

Just two years ago, crypto users in Nigeria operated in a legal gray zone—forced to rely on peer-to-peer exchanges and international platforms like Binance. The previous administration had clamped down on crypto trading, citing money laundering and volatility concerns.

But things began to shift in 2023 when the SEC launched its Accelerated Regulatory Incubation Program (ARIP) and granted provisional licenses to Nigerian crypto firms like Quidax and Busha.

Fast forward to 2025, and the country now has a full-fledged legal framework that not only recognizes digital assets but positions Nigeria as a crypto innovation hub.

Big Impact, Bigger Questions

“This is a major milestone,” said Dr. Emomotimi Agama, Director-General of the SEC. “The ISA 2025 reflects our commitment to building a dynamic, inclusive, and resilient capital market. We now have the legal tools to protect investors, support innovation, and attract both local and foreign capital.”

Still, industry experts caution that the real challenge lies ahead—execution.

“There’s no clear roadmap yet,” warned Femi Adegolu, CEO of Bchain Africa. “We’ve seen some licenses given out, but we need full clarity on tax policies, cross-border transactions, and crypto-custody rules.”

Despite the ambiguity, the mood among traders is upbeat.

“It’s about time,” said Chucks, a crypto educator and banker in Lagos. “We’ve been operating in fear for too long. Now I can openly teach others and build a legit business in this space.”

A Global Statement

The ISA 2025 also helps Nigeria retain its “Signatory A” status under the International Organization of Securities Commissions (IOSCO)—a critical benchmark for countries seeking to maintain global credibility in financial markets.

According to the Chainalysis 2024 report, Nigeria ranks second globally in crypto adoption, with Sub-Saharan Africa receiving over $125 billion in on-chain value last year. Stablecoins made up 43% of all crypto activity, showing their role as a hedge against currency volatility.

What This Means for You

Crypto trading is now officially legal and regulated in Nigeria.

Companies dealing with digital assets must now be licensed by the SEC.

Investors can expect clearer protections and more transparency.

Nigeria could become a hotbed for Web3 innovation and blockchain startups.

As lawmakers and entrepreneurs work to build out this new framework, one thing is clear: Nigeria isn’t just embracing crypto—it’s leading the charge.

Welcome to the future of finance. And this time, it’s regulated.