Nigeria has enacted the Investments and Securities Act 2025 (ISA 2025), which officially classifies digital assets as securities and mandates that all crypto platforms operating for Nigerian users must be licensed by the Securities and Exchange Commission (SEC).
The recent legislation signed into law permits the SEC to regulate digital assets comprehensively, including cryptocurrencies. Before ISA 2025, the legal framework for cryptocurrency in Nigeria was unclear, leading to substantial uncertainty in the market.
Implications of Using Unlicensed Platforms
Utilizing unlicensed exchanges poses significant risks for users, including limited access to banks and the naira, potential domain blocking, and diminishing legal protections. SEC licensing serves to ensure that crypto platforms comply with regulations designed to safeguard user interests.
- Capital Requirements: Licensed platforms must maintain a minimum capital reserve.
- AML and KYC Compliance: Platforms are required to implement stringent anti-money laundering procedures.
- Cybersecurity Standards: User data and assets must be secured with encrypted storage and proactive incident response strategies.
- Investor Protections: Transparency in fees, dispute resolution mechanisms, and clear terms of service are mandatory.
- Ongoing Reporting: Licensed firms must provide regular disclosures and compliance audits.
The SEC has also established the Accelerated Regulatory Incubation Programme (ARIP) to assist crypto platforms in achieving full licensing.
Examples of compliant platforms in 2026 include Monica Cash, Quidax, Busha, and Roqqu, which either have received the necessary approvals or operate in accordance with the SEC’s regulatory framework. Notably, Monica Cash has garnered a significant user base.
This material is informational and does not constitute financial advice.
