Nigeria Officially Recognizes Bitcoin as a Security: New Investment and Securities Act 2025 Signed into Law

On May 1st, a significant development in the cryptocurrency landscape emerged as Nigerian President Tinubu enacted the Investment and Securities Act 2025. This landmark legislation officially designates Bitcoin and a variety of digital assets as securities, marking a pivotal shift in legal recognition by Nigerian authorities. Under this law, the Nigerian Securities and Exchange Commission (SEC) will gain definitive regulatory authority over Virtual Asset Service Providers (VASPs), Decentralized Autonomous Organizations Providers (DAOPs), and Decentralized Asset Exchanges (DAEs). Additionally, the legislation aims to combat fraudulent schemes, enforcing stringent penalties for offenders, including fines of at least 20 million Naira (approximately $12,430) and potential prison sentences of up to 10 years. This regulatory framework represents a crucial step towards enhancing transparency and security in Nigeria’s increasingly dynamic digital asset market.