Digital currency regulation in Africa (1): Learning from Nigeria’s Crypto Securities Act

Bitcoin accounted for about US$1.69 trillion in digital assets (CoinMarketCap, 2025). There are over 37 million tokenized instruments, showing rapid innovation (Tangem Blog, 2025).

BlackRock’s iShares Bitcoin Trust (IBIT) has raised US$50 billion since January 2024. This indicates that traditional institutions see digital assets as essential for diversified portfolios (BlackRock, 2025).

However, Sub-Saharan Africa faces significant financial exclusion. Approximately 350 million adults, or 57% of the population, are unbanked (Cambridge Centre for Digital Innovation, 2023).

In contrast, remittance inflows to the region reached US$54 billion in 2023. These funds help many households but come with high fees and slow processing times (World Bank, 2024).

Properly regulated digital currencies can reduce remittance costs and improve financial inclusion. They can also stimulate local fintech ecosystems.

The key question is how Africa should engage with crypto safely and equitably. This article explores Nigeria’s Investments and Securities Act of 2024 (ISA 2024) as a model for crypto regulation.

It will analyze how ISA 2024 includes cryptocurrencies under Nigerian SEC oversight. The article will compare regulatory approaches in South Africa, Kenya, Ghana, and Mauritius. It will also assess the economic benefits of regulated digital-asset markets.

Finally, it will identify legal challenges and propose pan-African strategies to ensure sustainable growth through digital currencies.

Nigeria’s ISA 2024 – A Bold Legislative Framework

On April 7, 2025, President Bola Tinubu ratified ISA 2024. This law expands “securities” to include digital assets like cryptocurrencies (Kaaru, 2025; Adeyemo, 2025).

Virtual-asset service providers must now follow the same regulations as traditional brokers. Nigeria's classification signals that digital assets are central to its capital markets.

ISA 2024 gives extensive powers to the Nigerian Securities and Exchange Commission (SEC). The SEC can license exchanges and conduct inspections on-site (Mondaq, 2025; Reuters, 2024).

They can also compel data production from internet providers and impose fines up to five million naira or imprisonment for unregistered schemes. The Act strengthens measures against Ponzi schemes with penalties of up to ten years’ imprisonment for offenders (Chambers, 2025).

These actions enhance Nigeria's ability to regulate market abuses and build investor confidence.

Legal Recognition of Digital Exchanges

ISA 2024 requires all trading platforms in Nigeria to register as exchanges or specialized venues focusing on digital assets (Mondaq 2025). Custodial entities must meet capital requirements similar to traditional custodians.

This creates a level playing field between physical and digital service providers. All tokens traded in Nigeria benefit from SEC oversight and dispute-resolution mechanisms through an empowered tribunal.

Investor Protection Under ISA 2024

The Act sets strict disclosure standards for digital-asset issuers. Issuers must provide transparent white papers and audited smart-contract code (Aluko-Oyebode 2025).

Platforms must segregate client assets into trust accounts separate from corporate funds. This protects users against corporate misappropriation.

To prevent systemic shocks during volatility periods, the SEC can impose circuit breakers on exchanges. These provisions aim to protect retail investors while attracting institutional players by meeting international standards.

By recognizing digital assets as securities and empowering the SEC with modern tools, ISA 2024 positions Nigeria as a hub for blockchain innovation.

These reforms support deeper fintech integration while enhancing investor protections across Africa’s largest economy—serving as a model for other nations.

Comparative Landscape – Digital-Currency Legislation in Africa

South Africa classifies crypto assets as “financial products” under its FAIS Act of 2002. All Crypto Asset Service Providers must obtain licenses from the Financial Sector Conduct Authority (FSCA) since June 1st of this year (FSCA 2024).

By December of this year, FSCA received over four hundred applications—approving two hundred forty-eight so far while declining nine others.
Kenya has been cautious regarding cryptocurrencies until recently when it introduced a Virtual Asset Service Providers Bill in early January of this year.
This bill would require licensed platforms to establish physical branches within Kenya while integrating AML/CFT safeguards before conducting ICOs.
Ghana is pursuing two strategies: piloting its Central Bank Digital Currency called e-Cedi while allowing private crypto trading without regulation.
Mauritius enacted its Virtual Asset Services Act in December of last year which empowers its Financial Services Commission to license virtual asset service providers effectively.
Namibia has joined this trend with its Virtual Asset Act issued earlier this year which mandates provisional authorizations before full compliance is allowed.

Economic Rationale for Regulating Crypto in Africa

Digital currencies could help millions gain access to basic financial services across Sub-Saharan Africa where mobile finance adoption leads globally.
As of late last year there were eight hundred thirty-five million registered mobile-money accounts worldwide—nearly half globally—and two hundred thirty-four million active monthly users processed transactions worth approximately US$912 billion via three million agents embedded deep into local economies.
Despite these advancements though around three hundred fifty million adults remain unbanked according Cambridge Centre data from earlier this year indicating significant room remains available here still needing attention urgently!

Regulated stablecoin corridors could lower transfer costs significantly below current averages seen today making them more accessible than ever before!

Clear regulations may unlock venture capital opportunities leading towards job creation too! In fact African tech startups raised over one billion dollars last year alone primarily driven by fintech investments despite ongoing funding challenges faced industry-wide currently!

Lastly regulated markets might contribute positively towards national stability amidst inflationary pressures experienced recently throughout various regions including Ghana where rates peaked at eight percent mid-last-year prompting citizens seeking alternative stores value options available now through these channels instead!

In conclusion regulating cryptocurrency presents numerous advantages such as improving inclusivity lowering transaction fees stimulating economic growth creating jobs enhancing resilience overall benefiting entire continent moving forward together harmoniously!