Nigerian Government Introduces Sweeping Regulatory Changes for Web3 Projects

The Nigerian government has introduced significant regulatory changes affecting Web3 projects operating within its borders. The Investment and Securities Act (ISA) 2025 classifies digital assets as securities, imposing strict registration requirements on Virtual Asset Service Providers (VASPs).

Web3 projects that touch on digital asset exchange, wallet services, token issuance, or digital asset custody must register with the SEC under one of three categories: Digital Asset Exchanges (DAX), Digital Asset Offering Platforms (DAOPs), or Digital Asset Custodians (DACs). The minimum paid-up share capital is set at ₦500 million for entry into these categories.

Additionally, KYC and AML regulations are enforced with real consequences, including reporting suspicious activity to the Nigerian Financial Intelligence Unit. Transaction records must be kept for years, and blockchain analytics can connect wallets to real users.

The EFCC has already demonstrated its ability to freeze bank accounts linked to USDT sellers in 2024, highlighting the serious consequences of non-compliance.