President Bola Tinubu has enacted the Investments and Securities Act 2024, officially placing cryptocurrencies and other virtual assets under the regulation of the Securities and Exchange Commission as securities.
The newly signed law introduces a comprehensive framework for the regulation of digital asset activities like Digital Asset Exchanges, the of Virtual Asset Service Providers, and other blockchain-based operators.
These entities are now required to obtain licensing and comply fully with SEC regulations to continue operating legally within Nigeria.
The enactment of the new law reflects a significant policy shift following years of regulatory ambiguity regarding cryptocurrency operations in the country.
Under the new regime, all participants within the digital asset ecosystem will be subject to formal oversight, a move expected to reduce fraud, improve transparency and foster investor protection.
In addition to crypto regulation, the Act expands the powers of the SEC to oversee other aspects of the capital market.
The law introduces new classifications for securities exchanges, enhances corporate governance requirements, and provides a legal framework for commodities exchanges and warehouse receipt operations.
The SEC has confirmed that the legislation will facilitate better monitoring of market activities, support the introduction of innovative financial instruments, and strengthen Nigeria’s alignment with international capital market standards.
The Commission noted that these changes will position Nigeria as a more attractive destination for both local and international investors.
Industry operators have welcomed the legal recognition of crypto assets, describing it as a long-overdue reform.
Market analysts believe the law will not only attract capital into Nigeria’s digital asset sector but will also deepen the capital market by creating alternative investment channels for institutional and retail investors.
The Investments and Securities Act 2024 also introduces new measures to combat illegal investment schemes by expressly criminalising Ponzi and other fraudulent schemes.
Violators will face stringent penalties aimed at safeguarding investors and maintaining market integrity.
With Nigeria ranked among the top countries globally in cryptocurrency adoption, the new law is expected to formalise existing market dynamics and provide a clear structure for future digital asset growth.
The SEC is now tasked with issuing operational guidelines and commencing the registration of all digital asset operators in line with the new provisions.
The Federal Government has projected that the updated legal framework will boost confidence in the Nigerian capital market, facilitate responsible innovation, and enhance the country’s competitiveness in the global financial system.
