Operating Online Forex Platforms Without Registration Is Illegal- SEC
The Securities and Exchange Commission (SEC) has declared the operation of unregistered digital asset exchanges and online foreign exchange (FX) trading platforms illegal under the newly enacted Investments and Securities Act (ISA) 2025.
Signed into law by President Bola Tinubu in March, the legislation aims to modernize and reinforce Nigeria’s capital market, bringing it in line with the rapidly evolving digital finance environment.
In a statement released over the weekend, the SEC emphasized that operating such platforms without formal registration now constitutes a criminal offense.
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The commission stated;
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.
The Securities and Exchange Commission (SEC) stated that the newly enacted legislation broadens its regulatory scope, with Section 3(3)(b) of the Investments and Securities Act empowering the Commission to “register and regulate securities exchanges, commodity exchanges, virtual and digital asset exchanges, and other market venues.”
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SEC Director-General Emomotimi Agama hailed the ISA 2025 as a landmark reform, describing it as a transformative step forward for Nigeria’s capital market.
Agana said;
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.
We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market.
With the ISA 2025 now in force, the SEC has called on all stakeholders in the financial and investment sectors to review the new regulations and ensure full compliance with its provisions.
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