Nigeria 2025 Act Establishes Stablecoin Framework, SEC Leads Africa Crypto Innovation

Nigeria has introduced a comprehensive regulatory framework for digital assets and stablecoins under the 2025 Investment and Securities Act, positioning itself as a leader in Africa’s crypto ecosystem. The Securities and Exchange Commission (SEC) now oversees virtual assets, cryptocurrencies, and tokens as securities, granting it a clear mandate to regulate the sector and foster innovation within a structured environment. Director-General Emomotimi Agama emphasized the framework’s focus on “responsible innovation,” ensuring market stability, consumer protection, and integration with existing financial infrastructure [1].

The new rules require stablecoin issuers to maintain verifiable reserves, undergo regular audits, and comply with anti-money laundering (AML) and know-your-customer (KYC) protocols. These measures aim to align digital assets with Nigeria’s financial system while promoting transparency. Additionally, foreign virtual asset service providers (VASPs) seeking to operate in Nigeria must enter into reciprocal recognition agreements with their home country regulators, ensuring regulatory equivalence and market integrity [2].

A key component of the framework is the SEC’s regulatory sandbox, which allows licensed firms to test compliance with risk management standards and operational transparency. This approach has already attracted international interest, with companies like Blockchain.com planning to establish physical offices in Nigeria. Agama highlighted the country’s ambition to develop a “Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam” within five years, leveraging its strategic position in the continent’s fintech landscape [3].

The policy shift marks a departure from earlier enforcement actions, such as the 2024 lawsuit against Binance, which targeted illegal forex transactions and tax evasion. Minister of Information Mohammed Idris clarified that most crypto businesses are no longer subject to criminal penalties but must adhere to formal legal structures. This transition reflects a broader strategy to integrate digital assets into Nigeria’s financial ecosystem while mitigating systemic risks [4].

Analysts note that Nigeria’s approach balances innovation with risk mitigation by codifying stablecoin rules into national law. The emphasis on reserve backing and AML/KYC compliance aligns with global regulatory trends, potentially attracting foreign investment without compromising macroeconomic stability. Local firms such as Busha Digital Limited and Quidax Technologies Limited have already received approval-in-principle from the SEC, signaling a phased licensing strategy to onboard compliant operators [5].

The regulatory overhaul also addresses digital asset marketing, requiring promoters to obtain SEC approval to prevent misleading campaigns targeting retail investors. This mirrors similar initiatives in the United Arab Emirates, underscoring Nigeria’s commitment to aligning with international best practices while safeguarding market integrity [6].

Source: [1] [Nigeria Establishes Stablecoin Regulatory Framework with ...](https://www.ainvest.com/news/nigeria-establishes-stablecoin-regulatory-framework-aml-rules-sandbox-drive-innovation-market-trust-2507/)

[2] [Nigeria Welcomes Stablecoin Firms as SEC Chief Hints at ...](https://coincodecap.com/nigeria-welcomes-stablecoin-firms-as-sec-chief-hints-at-policy-shift)

[3] [Nigeria SEC Introduces Stablecoin Regulations under ...](https://www.ainvest.com/news/nigeria-sec-introduces-stablecoin-regulations-2025-act-policy-shift-2507/)

[4] [Nigeria Welcomes Stablecoin Firms as SEC Chief Hints at ...](https://coincodecap.com/nigeria-welcomes-stablecoin-firms-as-sec-chief-hints-at-policy-shift)

[5] [Nigeria Welcomes Stablecoin Firms as SEC Chief Hints at ...](https://coincodecap.com/nigeria-welcomes-stablecoin-firms-as-sec-chief-hints-at-policy-shift)

[6] [Nigeria's SEC Drums Up Stablecoin Regulation Advances in ...](https://cryptorank.io/news/feed/7a9ab-nigeria-opens-doors-to-stablecoin-markets)