Crypto Crackdown or Come-Up? New Nigerian Regulations Could Make or Break Industry Players

Nigeria’s newly updated Investment and Securities Act (ISA) of 2025 officially recognizes cryptocurrencies and other virtual assets as securities, marking a major shift in the country’s approach to digital finance. During a recent Nairametrics panel discussion, industry leaders clarified that the Securities and Exchange Commission (SEC) now regulates four major types of players: Virtual Asset Service Providers, Digital Asset Exchanges, Digital Asset Offering Platforms, and Digital Asset Custodians. This legal recognition not only provides regulatory clarity but also grants the SEC full enforcement power—something that had been missing since the agency’s first crypto-related statement in 2020.

However, with these clearer rules comes a shake-up in the financial sector. Panelists warned that traditional players like registrars and clearing system managers could become obsolete if they fail to adapt. As the industry rapidly digitalizes, only institutions that fully embrace automation and AI will remain competitive. In contrast, asset managers are still seen as strong contenders—provided they keep pace with tech innovations. The message was clear: evolve or exit.

The SEC isn’t stopping at classification and licensing. In June 2025, it launched the “Crypto Smart, Nigeria Strong” initiative aimed at developing stablecoin regulations and boosting digital literacy nationwide. The program targets young Nigerians through schools and online platforms, teaching them blockchain fundamentals, scam awareness, and responsible investing. This educational push underscores the SEC’s focus on building a trustworthy and inclusive digital finance ecosystem.

Despite the growing optimism, not all players may survive. The SEC has already issued warnings against platforms like Risevest and Stecs, emphasizing the need for investors to be cautious. At the same time, experts argue that regulation is not killing crypto—it’s legitimizing it. With more structured oversight, investor confidence is expected to grow, liquidity will increase, and digital assets may begin behaving more like traditional financial instruments. Whether this is a crackdown or a come-up depends on how quickly market players adapt.

Source: Nairametrics