Tinubu signs bill recognising crypto, other digital assets into law
President Ahmed Bola Tinubu has assented to the Investments and Securities Bill (ISB) 2025, which effectively repeals the Investments and Securities Act No. 29 of 2007 and enacts the Investments and Securities Act (ISA) 2025.
It was gathered that the bill signed into law by President Tinubu clearly recognises digital assets such as crypto and investment contracts as securities.
Described as landmark legislation, the President’s action has been hailed by stakeholders as a major boost to the capital market.
Industry players also believe it will strengthen the legal framework of the Nigerian capital market, enhances investor protection, and introduces critical reforms to promote market integrity, transparency, and sustainable growth.
The enactment of the ISA 2025 reaffirms the authority of the Securities and Exchange Commission (SEC) as the apex regulatory authority of the Nigerian capital market.
The new Act empowers the SEC to regulate the market to ensure capital formation, the protection of investors, maintenance of a fair, efficient and transparent market and reduction of systemic risks.
The Act also introduces transformative provisions to further align Nigeria’s market operations with international best practice.
Some of the salient provisions of the Act is that it expressly prohibits ponzi, and other unlawful investment schemes and also prescribes stringent jail terms for promoters of such schemes.
The new law equally addressed existing restrictions vis-a-vis raising of funds from the capital market by states to allow for greater flexibility in this regard.
The law shows President Tinubu-led administration now recognises virtual/digital assets such as cryptos and investment contracts as securities.
Recognizing crypto and digital assets under the new Investments and Securities Act is a significant step forward for Nigeria’s financial sector. This move could encourage more innovation and investment in the space while also providing much-needed regulatory clarity. It’ll be interesting to see how this impacts adoption and whether additional guidelines will follow to address concerns like security and fraud.
This is taden with international financial and business developmental practices .I hope it will not be abused by some Nigerian dishonest players who may like to swindle miners and discourage potential participants. Thanks.