The Securities and Exchange Commission (SEC) has banned digital asset exchanges or online foreign exchange trading platforms without formal registration.
It highlighted that the newly enacted Investments and Securities Act, 2025 (ISA 2025) makes it illegal to operate digital asset exchanges or online foreign exchange trading platforms without formal registration with the Commission.
Signed into law by President Bola Ahmed Tinubu, ISA 2025 significantly strengthens the regulatory framework governing Nigeria’s capital market, with a particular focus on digital finance.
The SEC clarified in a statement released over the weekend that, in accordance with the new law, it is now an offence for any entity to operate an online forex trading platform or provide related services without prior registration with the Commission.
By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the Commission to carry out the business of online foreign exchange trading platforms or related services.
Any business entity with the plan of setting up a business in any of these areas is advised to visit the HOD DRM Department of the Commission for further directives on how to register with the Commission to avoid sanctions”, the Commission added.
The Commission noted that “under the newly enacted legislation, the Securities and Exchange Commission (SEC) is now empowered to regulate a broader scope of market activities as Section 3(3)(b) of the Act explicitly mandates the Commission to “register and regulate securities exchanges, commodity exchanges, virtual and digital asset exchanges, and other market venues.”
Speaking on the development, the Director General of the Commission, Dr. Emomotimi Agama, described the new law as “a landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices.”
He stated, “The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms.”