The Securities and Exchange Commission (SEC) of Nigeria has declared that operating digital asset exchanges or online foreign exchange (forex) trading platforms without official registration is now illegal under the newly enacted Investments and Securities Act (ISA) 2025.
This legislation, signed into law by President Bola Tinubu in March, aims to enhance the regulatory framework of Nigeria’s capital market, particularly in the realm of digital finance.
In a statement released over the weekend, the SEC emphasized that any entity not registered with the Commission is prohibited from conducting business related to online forex trading platforms or similar services.
The Commission advised prospective operators in these sectors to consult the Head of Department, Department of Registration and Monitoring (HOD DRM) at the SEC for guidance on the registration process to avoid potential sanctions.
The ISA 2025 expands the SEC’s regulatory authority, mandating it to register and oversee securities exchanges, commodity exchanges, and virtual and digital asset exchanges, among other market venues. Dr. Emomotimi Agama, Director-General of the SEC, described the Act as a transformative development for Nigeria’s capital market, providing the legal foundation to offer clarity, protect investors, and bolster market confidence, especially in previously unregulated areas such as digital asset exchanges and online forex platforms.
He stated, “We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market”.
With the ISA 2025 now in effect, the SEC urges all stakeholders in the financial and investment sectors to familiarize themselves with the new provisions and ensure full compliance.
