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In a decisive move to strengthen regulatory compliance and enhance investor protection, Nigeria’s Securities and Exchange Commission (SEC) has officially declared the operation of unregistered digital asset exchanges and online foreign exchange (FX) trading platforms illegal, in line with the recently enacted Investments and Securities Act (ISA) 2025.
Signed into law by President Bola Tinubu in March 2025, the ISA introduces a modernized regulatory framework designed to align Nigeria’s capital market with the rapidly evolving landscape of digital finance. The new legislation expands the SEC’s mandate to include oversight of virtual and digital asset exchanges, providing a comprehensive compliance management system for the financial ecosystem.
In an official statement released over the weekend, the SEC emphasized that operating without formal registration now constitutes a criminal offense under Nigerian law.
“With the enactment of the ISA 2025, any entity engaging in online FX trading or digital asset exchange without SEC registration is operating illegally,” the Commission stated. “Prospective operators must approach the HOD DRM Department for guidance on regulatory requirements and registration procedures to avoid enforcement actions.”
The ISA 2025 significantly broadens the Commission’s regulatory authority. As outlined in Section 3(3)(b), the Act empowers the SEC to register and regulate securities exchanges, commodity exchanges, digital and virtual asset platforms, and other market infrastructures—reinforcing Nigeria’s commitment to global best practices in regulatory technology solutions and financial crime prevention.
Speaking on the transformative impact of the new Act, SEC Director-General Emomotimi Agama noted that the legislation equips the Commission to address emerging market dynamics while safeguarding investor interests.
“The ISA 2025 enables us to provide clear regulatory direction, enforce compliance audits, and enhance transparency in both traditional and digital financial segments,” said Agama. “We support innovation, but it must operate within a regulatory framework that ensures governance, risk, and compliance (GRC).”
Agama urged all stakeholders—especially operators in fintech, digital trading, and investment sectors—to prioritize regulatory risk management and adapt to the new compliance landscape.
“Now is the time for stakeholders to familiarize themselves with the ISA 2025 and align their operations accordingly. Compliance with this Act is not optional—it is a legal obligation that supports market integrity and investor confidence.”
As the SEC ramps up regulatory monitoring and enforcement under the ISA 2025, businesses are strongly encouraged to adopt robust compliance software and consult with regulatory advisory services to ensure full conformity with the new legal framework.
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