The Securities and Exchange Commission (SEC) has announced that under the newly enacted Investments and Securities Act, 2025 (ISA 2025), it is now a criminal offence to operate digital asset exchanges or online forex trading platforms in Nigeria without formal registration with the commission.
This declaration comes amid rising fears over the suspected collapse of CBEX, a digital asset trading platform. Concerns have grown since Friday, with users warning of possible fraud and the platform exhibiting characteristics of a Ponzi scheme. Many reported being unable to access their funds, fueling speculation of instability.
In a statement issued Sunday, the SEC clarified that the ISA 2025, recently signed into law by President Bola Ahmed Tinubu, grants the commission full authority to oversee digital financial platforms. According to the commission, no individual or entity is permitted to offer online forex or digital asset trading services without registering with the SEC.
“Operating such platforms without SEC registration is now a punishable offence in Nigeria,” the commission stated. It advised any company intending to venture into these areas to contact the commission’s HOD DRM Department for guidance to avoid regulatory penalties.The Act significantly expands SEC’s regulatory powers. Section 3(3)(b) of ISA 2025 authorizes the commission to register and supervise securities exchanges, commodity exchanges, and digital asset trading platforms, among others.
Dr. Emomotimi Agama, Director General of the SEC, hailed the new law as a major step in modernising Nigeria’s capital markets. “The ISA 2025 provides the clarity needed to protect investors and promote confidence, especially in emerging sectors like digital assets and online forex trading,” he said.
Agama stressed that while the SEC embraces innovation, it must occur within a regulated framework. “Our goal is to safeguard investors and uphold market integrity,” he added.
The SEC urged all stakeholders to familiarise themselves with the new provisions and ensure compliance. It also reiterated that those promoting or operating Ponzi schemes now face stiffer penalties, including a minimum fine of ₦20 million and jail terms of 10 years or more.
Source : https://dailytrust.com/
