President Bola Tinubu of Nigeria has enacted a new law that enhances the Securities and Exchange Commission’s oversight of cryptocurrencies by categorizing them as securities.
The President has signed the Investments and Securities Act 2024, which reclassifies cryptocurrencies as securities, thereby placing them under the jurisdiction of the Nigerian Securities and Exchange Commission, according to reports from local media.
This new legislation replaces the ISA 2007 Act and is said to broaden the SEC’s mandate in regulating Nigeria’s capital markets, including cryptocurrency exchanges. It also introduces stricter penalties for Ponzi schemes, which are often associated with the crypto sector.
Notably, individuals found guilty of operating Ponzi schemes could face sentences of at least 10 years in prison, alongside a minimum fine of N10 million (approximately $6,500). Depending on the severity of the crime, total financial penalties could reach up to N40 million (around $26,000).
Since assuming office in 2023, President Tinubu has prioritized fiscal reforms that aim to enhance government revenues and narrow the budget deficit, which includes overhauling tax administration. This regulatory initiative aligns Nigeria with other regions, such as the European Union with its Markets in Crypto-Assets framework, that are also advancing towards cryptocurrency regulation.