The Securities Exchange Commission (SEC) has announced that operating unregistered digital asset exchanges and online foreign exchange trading platforms is now illegal under the recently enacted Investments and Securities Act (ISA) 2025.

President Bola Tinubu signed the legislation into law last month, with the SEC stating that the new act aims to strengthen Nigeria's capital market and adapt to the evolving digital finance landscape.

In a weekend statement, the SEC warned that non-compliance is now a punishable offense: "By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the Commission to carry out the business of online foreign exchange trading platforms or related services."

Entities planning to establish businesses in these sectors are advised to contact the HOD DRM Department of the Commission for registration guidance to avoid sanctions.

The new legislation significantly expands the SEC's regulatory authority. Section 3(3)(b) of the Act explicitly empowers the Commission to "register and regulate securities exchanges, commodity exchanges, virtual and digital asset exchanges, and other market venues."

SEC Director-General Emomotimi Agama described the ISA 2025 as transformative for Nigeria's capital market, providing "legal backing to ensure investor protection and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms."

While affirming the Commission's support for innovation, Agama emphasized that it must occur "within a regulated environment that protects investors and maintains market integrity."

The SEC has advised all stakeholders in the financial and investment ecosystem to familiarize themselves with the new provisions and ensure full compliance with ISA 2025.​​​​​​​​​​​​​​​​