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Last month, **President Tinubu** signed into law the **Investment and Securities Act (ISA) 2025**, officially recognizing **Bitcoin** and other digital assets as securities. This monumental step comes as Nigeria continues to rank among the top nations globally for **Bitcoin adoption** and **P2P trading volumes**, according to **Chainalysis** reports.

With this new legislation, Nigerian regulators have finally acknowledged Bitcoin, albeit as a security—a classification some experts view as a misstep. Nonetheless, this development brings **much-needed regulatory clarity** to the digital assets ecosystem, paving the way for innovation and investment.

## The Investment and Securities Act (ISA) 2025
On **March 29**, the Nigerian government enacted the ISA 2025 to reform capital markets. This new Act replaces the previous **2007 Investments and Securities Act No. 29**, addressing current economic realities and challenges while empowering the **Nigerian SEC** to foster innovation and protect investors more effectively.

### Overview of The Act
The ISA 2025 designates digital assets as securities, placing them under the oversight of the Nigerian SEC. This change enhances transparency, improves investor protection, and aims to align with global standards set by the **International Organization of Securities Commissions (IOSCO)**.

### Key Highlights of The Act
- All **virtual assets** and **investment contracts** are now recognized as securities, placing **Virtual Asset Service Providers (VASPs)** and **Digital Asset Exchanges (DAEs)** under SEC supervision.
- The Act prohibits fraudulent investment schemes, allowing the SEC to impose fines and prison sentences for violations.

## Implications Of the Regulation on the Bitcoin Ecosystem
With Bitcoin's legalization, companies can explore new financial products without prior uncertainties. The ISA 2025 also provides mechanisms for investors to seek redress against fraud.

### Bitcoin As A Security
While the Act is welcomed by many Bitcoin entrepreneurs, there is concern over the potential negative impact of classifying Bitcoin as a security. Critics argue that this classification may create barriers to entry for smaller innovators in the space.

### Cost to Bitcoin Businesses
Bitcoin businesses face a rigorous transition to comply with the new regulations, which include obtaining licenses from the SEC and updating internal operations. This shift may raise operational costs and create hurdles for new ventures.

## Outlook For Bitcoin Companies In Nigeria
For experienced Bitcoin founders, the Act signifies a starting point for better communication with regulators. The future success of Bitcoin in Nigeria will rely on ongoing discussions to distinguish Bitcoin from other digital assets, ultimately fostering innovation and economic development.

We are entering a new era for Bitcoin in Nigeria as the asset and industry gain official recognition.

Last month, President Tinubu signed the Investment and Securities Act (ISA) 2025 into law, officially recognizing Bitcoin and other digital assets as securities.

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