Operating online FX platforms without registration is illegal – SEC

The Securities and Exchange Commission (SEC) has outlawed unregistered operations of digital asset exchanges and online foreign exchange (FX) trading platforms under the newly enacted Investments and Securities Act (ISA) 2025.

The law, signed by President Bola Tinubu in March, is designed to strengthen Nigeria’s capital market and align it with the evolving digital finance landscape.

In a statement issued over the weekend, the SEC warned that it is now a punishable offence to operate such platforms without formal registration. “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,” the commission said.

“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.”

The SEC said the new legislation expands its regulatory authority, as Section 3(3)(b) of the Act mandates the commission to “register and regulate securities exchanges, commodity exchanges, virtual and digital asset exchanges, and other market venues.”

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 ISA 2025 now in effect, the SEC urged all stakeholders in the financial and investment sectors to familiarize themselves with the new provisions and ensure full compliance.