Experts have identified four categories of players now recognized under Nigeria’s Investment and Securities Act (ISA) of 2025, which officially classifies cryptocurrency as an asset class in the country.
This was revealed 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 of CiO of Cordros Capital; and Buchi Okoro, CEO of Quidax.
When asked which players are regulated in Nigeria’s capital market under the SEC’s crypto framework, Buchi Okoro stated:
“The regulation covers four types of players: Virtual Asset Service Providers, Digital Asset Exchanges, Digital Asset Offering Platforms, and Digital Asset Custodians.”
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The other experts agreed, adding that to operate legally in Nigeria, all players in the crypto space—whether 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.
When asked which traditional players might struggle to survive the ongoing regulatory shift, most of the experts pointed to registrars and clearing system managers. They warned that these entities risk becoming obsolete if they fail to embrace the digital age.
“Unless they evolve and automate their processes further, I would sell them,” one expert said bluntly, with others nodding in agreement. The panel agreed that only those who adopt AI and fully digitalize their systems will remain relevant in the new financial landscape.
In contrast, the panel viewed asset managers more favorably. They agreed that asset managers are still a “buy,” provided they embrace automation and adapt quickly to AI-driven technologies shaping the digital finance space.
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.
- However, without strong legal backing, the 2020 approach faced challenges with enforcement.
To fix this, the updated ISA 2025 now officially recognizes virtual assets, including cryptocurrencies and tokens, as securities.
This gives the SEC the full legal power to regulate, license, and enforce rules around crypto investments in Nigeria, offering stronger protection for investors.
According to Buchi Okoro, this change could help restore investor confidence and bring more people into 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 agreed, saying regulations are making cryptocurrencies behave more like traditional financial assets such as stocks and currencies.
Both globally and in Nigeria, tighter regulations have played a major role in boosting trust and adoption.
To support this momentum, Nigeria’s SEC is rolling out Crypto Smart, a new initiative focused on creating 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 rules and boost digital literacy.
- It targets young Nigerians in schools, universities, and online, teaching blockchain basics, how to avoid scams, and the value of long-term investing.
The SEC says the future of digital assets in Nigeria depends 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.
