Nigeria’s Stance on Bitcoin: Security or Currency?
Sixteen years after its inception, Bitcoin’s classification remains a global debate, especially for regulators in emerging markets. Nigeria, notably, has classified Bitcoin and other cryptocurrencies as securities. This decision, formalized in the 2025 Investment and Securities Act, positions Bitcoin under the regulatory purview of the Securities and Exchange Commission (SEC).
Bitcoin as a Security in Nigeria
Nigeria’s stance aligns with recommendations from the International Organisation of Securities Commissions (IOSCO). IOSCO advocates for applying traditional investor-protection rules to crypto-assets that perform similar economic functions as conventional financial instruments. This approach treats Bitcoin not merely as digital money but as an investment asset, subject to capital market regulations. However, classifying Bitcoin definitively is challenging due to its unique attributes and functionalities.
Ultimately, Nigeria’s regulatory approach reflects a cautious, investor-protection-focused perspective on the evolving landscape of cryptocurrency in the African tech and finance sectors. While the debate on Bitcoin’s true nature continues, Nigeria’s actions highlight the complexities regulators face in balancing innovation with financial security.
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