Nigeria Advances Toward FATF Delisting With New Crypto Regulation

Nigeria is taking significant steps to exit the Financial Action Task Force (FATF) grey list following the passage of the Investments and Securities Act (ISA 2025), which introduces legal frameworks for the regulation of digital assets and cryptocurrencies.

The new law, signed by President Bola Tinubu, is designed to address deficiencies in the country’s anti-money laundering (AML) and counter-terrorism financing (CFT) policies that led to its inclusion on the grey list in February 2023.

Securities and Exchange Commission Director-General, Dr. Emomotimi Agama, stated that the law enhances Nigeria’s regulatory oversight and demonstrates a strong commitment to international compliance standards. He noted that the SEC now has the authority to supervise cryptocurrency activities and bring operators under formal regulation.

The new framework defines virtual assets as securities and places them within the scope of regulated exchanges. This move aims to improve investor protection, prevent misuse of the digital finance space, and encourage innovation through greater market confidence.

To support this, the SEC has launched incubation programs to evaluate and guide fintech companies operating in the digital asset space. The next phase of program admissions is expected in the coming quarter.

Agama highlighted strengthened Know Your Customer (KYC) processes and inter-agency collaboration with the Central Bank of Nigeria, the EFCC, and the Nigeria Financial Intelligence Unit as key to ensuring transparent and secure financial operations.

These measures are intended to promote trust, protect investors, and support the country’s broader financial reform agenda.