Crypto Regulations in Nigeria: Which Businesses May Struggle to Survive
Experts have identified four categories of participants now recognized under Nigeria’s Investment and Securities Act (ISA) of 2025, which officially classifies cryptocurrency as an asset class in the country.
This information was shared during a recent episode of Nairametrics’ YouTube show, “Drinks and Mics,” co-hosted by Ugo Obi-Chukwu, CEO of Nairametrics; Tunji Andrews, CEO of Awabah; Arnold Dublin-Green, CIO of Cordros Capital; and Buchi Okoro, CEO of Quidax.
When asked about the players regulated in Nigeria’s capital market under the SEC’s crypto framework, Buchi Okoro responded that all participants in the crypto space—whether they are Virtual Asset Service Providers like wallet platforms, Digital Asset Exchanges such as Quidax, or platforms involved in asset offerings and custody—must be licensed by the SEC to operate legally in Nigeria.
The experts also discussed which traditional players might struggle to adapt to the ongoing regulatory changes. Most pointed to registrars and clearing system managers, warning that these entities could become obsolete if they do not embrace digital transformation.
“Unless they evolve and further automate their processes, I would sell them,” one expert stated bluntly, with others agreeing. The panel concluded that only those who adopt AI and fully digitize their systems will remain relevant in the new financial landscape.
In contrast, the panel viewed asset managers more positively. They agreed that asset managers are still a “buy,” as long as they embrace automation and quickly adapt to AI-driven technologies that are shaping the digital finance sector.
The Investment and Securities Act (ISA)
The Investment and Securities Act (ISA) of 2007 did not explicitly recognize virtual assets. However, in 2020, the Securities and Exchange Commission (SEC) took its first step toward regulating them by issuing a statement that categorized digital assets and proposed a basic regulatory framework.
– Unfortunately, the 2020 approach faced enforcement challenges due to a lack of strong legal backing.
To address this, the updated ISA 2025 now officially recognizes virtual assets, including cryptocurrencies and tokens, as securities. This change grants the SEC full legal authority to regulate, license, and enforce rules regarding crypto investments in Nigeria, providing stronger protection for investors.
According to Buchi Okoro, this update could help restore investor confidence and attract more participants to the market. “With more people entering the market, there’s more liquidity, which naturally reduces volatility,” Okoro explained. “Tighter regulations and more responsible players are bringing order to the space.” The other panelists concurred, noting that regulations are making cryptocurrencies behave more like traditional financial assets such as stocks and currencies.
Globally and in Nigeria, stricter regulations have significantly boosted trust and adoption. To further this momentum, Nigeria’s SEC is launching “Crypto Smart,” a new initiative aimed at establishing clear rules for stablecoins and expanding the country’s digital finance ecosystem.
Crypto Smart Plans
In mid-June 2025, the Securities and Exchange Commission (SEC) announced the “Crypto Smart, Nigeria Strong” initiative to develop stablecoin regulations and enhance digital literacy.
– This initiative targets young Nigerians in schools, universities, and online, teaching them the basics of blockchain, how to avoid scams, and the importance of long-term investing.
The SEC emphasizes that the future of digital assets in Nigeria relies on collaboration, innovation, and trust, and plans to expand its licensing system to support this. It is also exploring digital asset ETFs, secure wallets for pension funds, and tokenized securities for institutional investors.
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