SEC: Operating digital asset exchanges, online FX platforms without registration illegal

The Securities Exchange Commission (SEC) has outlawed unregistered operations of digital asset exchanges and online foreign exchange (FX) trading platforms under the new Investments and Securities Act (ISA) 2025.

Signed into law by President Bola Tinubu in March, the SEC said the legislation aims to strengthen Nigeria’s capital market and adapt it to the evolving digital finance landscape.

In a statement issued over the weekend, the SEC warned that operating without formal registration 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,” SEC said.

“Any business entity with the plan of setting up a business in any of this area is advised to visit the HOD DRM Department of the Commission for further directive on how to register with the Commission to avoid sanctions.

“Under the newly enacted legislation, the Securities and Exchange Commission (SEC) is now empowered to regulate a broader scope of market activities as Section 3(3)(b) of the Act explicitly mandates the Commission to “register and regulate securities exchanges, commodity exchanges, virtual and digital asset exchanges, and other market venues.”

Speaking on the development, Emomotimi Agama, SEC’s director-general (DG), described the ISA 2025 as a transformative move for Nigeria’s capital market.

“The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms,” he said.

Agama reaffirmed the commission’s commitment to supporting innovation while maintaining strict oversight.

“We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market,” Agama said.

With ISA 2025 now in force, the DG advised stakeholders in the financial and investment ecosystem to familiarise themselves with the new provisions and ensure full compliance.