SEC Prohibits Operation of Online FX Platforms Without Registration

The Securities and Exchange Commission (SEC) in Nigeria has announced that operating unregistered digital asset exchanges and online foreign exchange trading platforms is now illegal, thanks to the newly enacted Investments and Securities Act (ISA) 2025. This law, signed by President Bola Tinubu in March, aims to fortify Nigeria's capital market and adapt it to the rapidly evolving digital finance landscape.

The SEC warned that it is now a punishable offense to operate such platforms without formal registration. Any business entity planning to set up in this area is advised to visit the HOD DRM Department of the Commission for further directives on how to register and avoid sanctions.

The new legislation expands the SEC's regulatory authority, mandating it to register and regulate securities exchanges, commodity exchanges, virtual and digital asset exchanges, and other market venues. According to Section 3(3)(b) of the Act, the SEC is now empowered to oversee these areas.

SEC Director-General Emomotimi Agama described the ISA 2025 as a transformative shift for the Nigerian capital market. "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," Agama said.

"We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market," he added. With the ISA 2025 now in effect, the SEC urges all stakeholders in the financial and investment sectors to familiarize themselves with the new provisions and ensure full compliance.