OPINION | What the Passing of the Nigeria ISA 2025 Crypto Law Means for Web3 Projects

A post by Omosefe EgharevbaOmosefe Egharevba, Web3 Growth Strategist

Nigeria passed the most comprehensive crypto law in Africa.

Most Web3 projects still don’t know what it means for them. Honestly?

A few years ago, I didn’t either.

When I first entered Web3, I was running spaces, building community, showing up everywhere. I understood the culture. I understood the energy. I thought that was enough.

Nobody was talking about the SEC. Nobody was asking about VASP registration or capital thresholds.

We were all just building fast, loud, and largely unbothered by regulatory frameworks that felt like they belonged to a different, more boring industry.

Then the CBN moved. Then the EFCC started freezing accounts. Then Binance the biggest exchange in the world found itself in Nigerian courtrooms.

And I realized: the rules were always there. We just weren’t paying attention.

That shift changed how I work. It changed what I tell every project that comes to me wanting to enter this market. And it’s why ISA 2025 doesn’t intimidate me it actually makes sense to me now.

Let me break down what it means for you.

The Investments and Securities Act ISA 2025 officially classifies digital assets like Bitcoin as securities.

That single sentence changes everything about how you operate in Nigeria.

It’s not a suggestion. It’s not a grey area. It’s law.

So what does it actually mean if you’re a Web3 project eyeing the Nigerian market?

1.) You need to register. Full stop.

Any company operating a crypto exchange, wallet service, token issuance, or digital asset custody in Nigeria must register with the SEC as a Virtual Asset Service Provider a VASP.

There are three categories:

• -Digital Asset Exchanges (DAX)

• Digital Asset Offering Platforms (DAOPs)

• Digital Asset Custodians (DACs)

If your product touches any of these, registration isn’t optional. It’s required.

2.) The capital threshold is real.

Minimum paid-up share capital of ₦500 million. That’s the entry bar.

Some exchanges like Busha and Quidax have received Approval-in-Principle under the SEC’s Accelerated Regulatory Incubation Program (ARIP), allowing them to operate while completing full compliance.

That pathway exists. But you have to actually walk it.

3.) Anonymity is over.

KYC and AML requirements are enforced with real consequences.

Exchanges must report suspicious activity to the Nigerian Financial Intelligence Unit.

Transaction records must be kept for years. Blockchain analytics are being used to connect wallets to real users.

The EFCC already froze 22 bank accounts linked to USDT sellers in 2024. They have the tools. They are using them.

4.) Tax is now unavoidable.

From January 2026, crypto exchanges are required to report every user transaction to tax authorities.

Failure risks your operating license. Capital gains from crypto are now treated as chargeable gains under personal income tax rates climbing as high as 25%.

I share all of this not to overwhelm you but because I wish someone had laid it out this clearly for me when I was starting.

Stay tuned to BitKE on regulation in Africa

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