‘ISA 2025 signals new era for Nigeria’s crypto sector’, Ibe urges compliance

The Nigerian cryptocurrency sector has entered a new era following the signing of the Investment and Securities Act (ISA) 2025 into law by President Bola Tinubu on March 29, 2025. The new law brings digital assets formally under the regulation of the Securities and Exchange Commission (SEC), ending years of uncertainty that crippled the sector. […]

The Nigerian cryptocurrency sector has entered a new era following the signing of the Investment and Securities Act (ISA) 2025 into law by President Bola Tinubu on March 29, 2025.

The new law brings digital assets formally under the regulation of the Securities and Exchange Commission (SEC), ending years of uncertainty that crippled the sector.

Reacting, tech and crypto lawyer, Favour Chinaza Ibe, called on crypto founders to seize the opportunity created by the new law or risk being left behind.

“For years, we operated in a regulatory grey area that stifled innovation and discouraged investors. With ISA 2025, we now have a framework that offers structure, legitimacy, and a real chance for startups to grow within Nigeria,” Ibe said during an exclusive interview with reporters.

According to Ibe, the absence of clear laws in previous years forced many Nigerian crypto startups to register abroad or operate in stealth mode.

She recounted personal experiences where crypto startups she was consulting were denied banking services, and where the Central Bank of Nigeria’s 2021 directive prohibiting crypto transactions created widespread fear and stunted growth.

The new ISA 2025 Act expands the definition of “securities” to include virtual assets, making registration with the SEC mandatory for Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and crypto exchanges. Startups are also expected to meet enhanced compliance requirements such as anti-money laundering (AML) protocols, know-your-customer (KYC) verification, and regular reporting.

“The law introduces heavy compliance obligations, and startups must be prepared for the cost of operating legally in Nigeria,” Ibe stated. “Compliance is now part of the survival strategy for any crypto startup to thrive in Nigeria.”

She further pointed out that while the Act represents a major win for the ecosystem by providing a framework that can attract venture capital, founders should be wary of potential bureaucratic delays and enforcement inconsistencies that have historically plagued Nigerian regulatory agencies.

Ibe expressed optimism that ISA 2025 could help rebuild Nigeria’s reputation as Africa’s leading crypto hub, provided that both regulators and startups uphold their responsibilities.

“After years of fear and uncertainty with my clients, this legislation gives Nigerian crypto founders a seat at the table. It’s now up to us to leverage this new era responsibly,” she added.

Analysts believe that ISA 2025 could open new doors for innovation, foreign investment, and global partnerships if implemented effectively.

However, they also caution that high compliance costs and regulatory hurdles could pose significant challenges for early-stage startups.