It is Illegal to Operate Digital Asset Exchanges or Online Foreign Exchange Trading Platforms – SEC

The Securities and Exchange Commission (SEC) ,ostensibly reacting to the growing apprehension over the fate of a popular digital trading platform ,has warned Nigerians against doing business with and operating unregistered and illegal trading concerns.

According to SEC , the Investments and Securities Act, 2025 (ISA 2025) recently signed into law ,outlaws the operation of illegal digital asset exchanges or online foreign exchange trading platforms. It said anyone or operator wanting to carry on such business must be duly registered with SEC Nigeria

According to SEC, ” In accordance with the ISA 2025 recently signed by President Bola Ahmed Tinubu, it is now an offence for any entity to operate an online forex trading platform or provide related services without prior registration with the commission.”

The Statement released on Sunday April 13,2025 “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.

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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.”

Dr Emomotimi Agama, SEC Director General Gives further explanation:

“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.”

“It is landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices.

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

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