Nigeria Establishes Regulatory Framework for Cryptocurrencies in 2025

Nigeria, long recognized as a leader in cryptocurrency adoption, has taken a significant step forward by implementing a comprehensive regulatory framework for digital assets in 2025. The Securities and Exchange Commission (SEC) now oversees crypto asset service providers, marking a stark reversal from the country's 2017 ban on financial institutions dealing with virtual currencies.

The new rules classify cryptocurrencies as securities, granting them legal recognition for transactions. Nigerians can now legally use digital assets to purchase goods and services, provided they comply with the SEC's guidelines. This shift reflects the Tinubu administration's pragmatic approach to balancing innovation with financial oversight.

Notably, the SEC has implemented rigorous Level 3 due diligence requirements for VIRTUAL asset service providers, delaying licensing approvals to ensure thorough vetting. Director General Emomotimi Agama emphasized these measures as critical for building a structured crypto ecosystem in Africa's largest economy.