Despite the introduction of the Investment and Securities Act (ISA), which classifies digital assets as regulated assets, many Nigerians remain unaware of the types of crypto businesses covered by the ISA 2025.
President Bola Tinubu introduced the regulation in March to provide a clear legal framework for businesses operating within the cryptocurrency ecosystem.
The move aims to protect investors, reduce fraud, and stabilise the fast-growing market.
This article explains the four major categories of crypto businesses now recognised and required to register with the Securities and Exchange Commission (SEC).
Crypto platform now regulated under the SEC in Nigeria
1. Virtual Asset Service Providers (VASPs): These include platforms offering crypto wallet services, payment gateways, and other intermediary roles that facilitate digital asset transactions.
Examples include Yellow Card, Trust Wallet, Bundle Africa, and similar service providers operating within Nigeria’s crypto ecosystem.
2. Digital Asset Exchanges: These are trading platforms where users can buy, sell, and trade cryptocurrencies under SEC supervision.
Notable platforms in this category include Quidax, a Nigerian-based exchange, Luno, a global exchange with a strong Nigerian presence; and Binance, which previously offered P2P services to Nigerian users but is currently restricted due to regulatory concerns.
3. Digital Asset Offering Platforms: These platforms enable fundraising through digital token offerings such as Initial Coin Offerings (ICOs) and Security Token Offerings (STOs).
Platforms classified in this category include Trove Finance, primarily known for stock trading but adaptable for token offerings, CoinLaunch, and Raise by Bamboo, or similar platforms positioned to operate within this regulatory bracket.
4. Digital Asset Custodians: These are institutions responsible for the secure storage and management of crypto assets on behalf of individuals or institutions.
These include BitGo, a global crypto custodian, Anchorage Digital, and anticipated Africa-focused bank partnerships.
Nigerian banks are also expected to enter this space under the new regulatory framework and offer custody services for institutional investors.
Under the ISA 2025, any business operating within these four categories that fails to register with the SEC is considered non-compliant and risks penalties.
The new law aims to weed out fraudulent operators, protect investors, and foster a secure and transparent digital finance environment.
This development marks a significant departure from the previous regulatory uncertainty. While the SEC introduced initial crypto guidelines in 2020, enforcement was limited due to the lack of explicit legal backing.
The 2025 update covers that gap by legally classifying cryptocurrencies as securities, granting the SEC full authority to monitor, license, and penalize violators.
Impact on traditional financial players
While the crypto sector gains legitimacy, traditional financial institutions face challenges, particularly registrars and clearing system managers.
These entities may risk becoming obsolete unless they rapidly adopt automation and artificial intelligence (AI) to remain competitive in the evolving financial landscape.
On the other hand, asset managers are seen as well-positioned to thrive, provided they integrate AI-driven tools and adapt to the growing demand for digital asset investments.
The ISA 2025 framework encourages traditional finance players to innovate, ensuring their relevance in an increasingly digitised economy.
The SEC launched the “Crypto Smart, Nigeria Strong” initiative to further strengthen Nigeria’s digital finance ecosystem in mid-2025. This program focuses on:
1. Developing clear regulations for stablecoins to ensure their stability and reliability in the Nigerian market.
2. Enhancing blockchain literacy among students, young professionals, and online communities by teaching them how to identify scams and invest wisely.
3. Expanding licensing frameworks to accommodate new types of digital asset services, including crypto ETFs, tokenised securities, and pension fund-compliant wallets.
The initiative aligns with the SEC’s broader vision of fostering collaboration, innovation, and trust in Nigeria’s crypto industry. By promoting responsible investment practices and regulatory compliance, the commission aims to position Nigeria as a leader in Africa’s digital asset market.
Clear regulation will drive institutional adoption
With clearer regulations and increased institutional participation, Nigeria’s crypto market is expected to grow significantly in the coming years.
The ISA 2025 has already contributed to reduced volatility and improved liquidity, making digital assets more attractive to both retail and institutional investors.
As the SEC continues to refine its policies, the Nigerian crypto sector is set to become more structured, secure, and integrated into the global financial system.
The recognition of these four major business categories under the new law is just the beginning—more innovations, including decentralised finance (DeFi) solutions and blockchain-based financial products, will likely emerge as the regulatory environment grows.
Businesses and investors can now operate with greater confidence, knowing that Nigeria’s crypto industry is no longer the wild west but a regulated and evolving space with immense potential.
