President Bola Tinubu has signed the Investments and Securities Act (ISA) 2024 into law—officially categorizing cryptocurrencies and other virtual assets as securities. This landmark legislation repeals the 2007 Act and brings Virtual Asset Service Providers, Digital Asset Operators and Digital Asset Exchanges under the regulation of the Securities and Exchange Commission (SEC).
SEC Director-General Emomotimi Agama characterized the law as a transformative step towards a more transparent and investor-friendly market. The Act strengthens SEC’s oversight, aligns regulations with global standards and explicitly bans Ponzi schemes. It also provides a legal framework for commodities exchanges, sub-national capital raising and the implementation of Legal Entity Identifiers (LEIs) for transaction transparency.
Nigeria’s cryptocurrency landscape has evolved from widespread adoption to regulatory uncertainty, with past Central Bank restrictions driving activities underground. The new law indicates a policy shift aimed at fostering innovation while protecting investors. Financial experts see this as a critical step in positioning Nigeria as a global player in digital finance and capital markets.
