SEC Cracks Down on Unregistered Digital and Forex Trading Platforms Under New ISA 2025 Law

The Securities and Exchange Commission (SEC) of Nigeria has announced a ban on the operation of digital asset exchanges and online foreign exchange (forex) trading platforms that are not formally registered with the Commission. This decisive action follows the signing into law of the new Investments and Securities Act, 2025 (ISA 2025) by President Bola Ahmed Tinubu. The legislation marks a significant regulatory shift in the oversight of Nigeria’s capital market, particularly targeting the fast-growing digital finance sector.

According to a statement issued by the SEC, operating an unregistered online forex or digital asset trading business is now a prosecutable offence under ISA 2025. The Commission emphasized that any entity interested in offering such services must first undergo a formal registration process. To aid this, it encouraged prospective operators to contact its Department of Digital Risk Management (DRM) for guidance, warning that failure to comply will attract strict sanctions.

ISA 2025 grants the SEC broader authority to regulate new areas of the financial market, including securities exchanges, commodity platforms, and virtual or digital asset exchanges. The law’s expanded mandate aims to close regulatory gaps, ensure investor protection, and bring Nigeria’s financial ecosystem up to international standards. This includes creating a secure environment for innovation to flourish within clearly defined legal boundaries.

Dr. Emomotimi Agama, Director General of the SEC, described the legislation as a “landmark step” in the evolution of Nigeria’s financial markets. He stressed that the new framework enhances the Commission’s ability to promote investor confidence and market integrity, particularly in previously unregulated sectors. Agama reiterated the Commission’s commitment to balancing innovation with robust oversight and urged all stakeholders to familiarise themselves with the new legal requirements to avoid penalties.

Source: Tribune