As digital trading and crypto finance continue to grow in Nigeria, the federal government has taken a decisive step to strengthen market oversight.

The newly assented Investments and Securities Act, 2025 (ISA 2025), has introduced significant reforms to Nigeria's investment landscape.

One of the key changes is that it has made it illegal to operate digital asset exchanges or online foreign exchange trading platforms without formal registration with the Securities and Exchange Commission (SEC).

A few weeks ago, President Bola Tinubu signed the act into law as part of moves to strengthen the regulatory framework governing Nigeria’s capital market, especially digital finance.

By effect of this new law, every existing online forex platform or digital asset exchange is considered illegal unless duly registered with the SEC.

SEC declares online forex platforms illegal

The SEC released a statement over the weekend confirming that it is now a sanctionable offence for any individual or corporate entity to operate an online forex trading platform or provide related services without prior registration with the Commission.

The SEC statement reads in part;

“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.
The statement also directed businesses operating in that space to visit the HOD DRM department under SEC for further instructions on how to legalize their operations with the commission, the Tribune reports.

The SEC statement added that the new ISA empowers it as a regulator of a broader scope of market activities, with Section 3(3)(b) of the Act giving the Commission the power to register and regulate all online securities exchange, including virtual and digital asset exchange, among others.

Thus, Online traders and investors are responsible for ensuring that a platform is duly registered and recognised by the SEC before investing in/with it.

ISA empowers SEC to take legal action
Recall that the SEC Director General, Dr. Emomotimi Agama, described the new law as a landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices.

He added that the ISA 2025 has given the Commission the legal backing to take decisive steps to protect Nigerian investors and boost market confidence, particularly in new segments such as digital asset exchanges and online foreign exchange platforms, which were not captured or regulated under the old law.

He noted that the SEC is supportive of innovations, but they must occur within a regulated space that protects investors and maintains the integrity of the Nigerian capital market.

Dr. Agama urged stakeholders in the financial and investment ecosystem to get familiar with the provisions of the new law and ensure full compliance, the Sun reports.

FG to enforce 10-year jail term against Ponzi scheme operators
In related news, the Securities and Exchange Commission (SEC) has announced its readiness to go all out against Ponzi scheme operators.

The SEC DG noted that the newly signed ISA (2025) has given the commission legal authority to prosecute illegal scheme operators.

Legit.ng reported that the Act also recommended stiff penalties, including a 10-year jail term for offenders.