The Securities and Exchange Commission (SEC) says the newly enacted Investments and Securities Act, 2025 (ISA 2025) makes it illegal to operate digital asset exchanges or online foreign exchange trading platforms without formal registration with the commission.
Daily Trust reports that this comes amid fears that CBEX, a digital asset trading platform, has crashed.
Since Friday, there have been concerns over the operations of the platform, with some users warning that it showed signs of being a Ponzi scheme.
But an X user, Ajoke (@BlessedAjoke) said, “Cbex is still working perfectly just that you can’t withdraw until 15th of April. You people should stop spreading fake news. Stop giving people heart attack nah.”
Another user, aust;n (@0kparam), criticised those celebrating the platform’s possible collapse.
“Y’all are acting like cbex crashing makes you financial sages. Nah, it just makes you bitter haters… Ponzi, yen yen yen. Just stfu coward,” he wrote.
In a statement on Sunday, the SEC clarified that, 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.
“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.
“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 it added.
The commission noted that “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.”
Speaking on the development, the director general of the commission, Dr Emomotimi Agama, described the new law as “a landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices.”
He stated, “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.”
The commission reaffirmed its commitment to supporting innovation while maintaining strict oversight. “We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market,” Agama added.
“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” the SEC added.
Earlier, the commission had said promoters and operators of Ponzi schemes, under the new law, face a jail term of 10 years or more.
It further explained that the Act stipulates a minimum fine of N20 million for anyone operating a Ponzi scheme in Nigeria.
“So, N20 million is not the entire penalty or the entire money that will be charged or sanctioned to any suspecting or any accused capital market or non-capital market operator. It is just part of the penalties and or the sanctions that will be meted against such persons,” Agama explained
Daily Trust
