5 ways to navigate blockchain regulation in 2025, according to experts

From extreme Crackdown on crypto companies In 2024 to Granting the first licenses for cryptocurrency exchanges In the same year, 2024 has been a roller coaster when it comes to regulation. Given that there is still no clear regulation of blockchain technology, 2025 may be no different.

However, there are steps blockchain companies can take to protect themselves in the blockchain space where regulations are unclear.

In a webinar titled “Regulatory Mobility as a Blockchain Company in Nigeria” hosted by Techpoint AfricaChioma Onyekello, a blockchain forensics and compliance specialist, noted that the cost of non-compliance outweighs the cost of compliance.

Giving a regulator perspective to the discussions, Aziza Hassan Jubril, Head of Non-Interest Capital Market Products at the Nigerian Securities Commission, said the priority of regulators was to ensure “rigorous regulation that ensures market stability, integrity and confidence.”

While the Securities and Exchange Commission (SEC) has been proactive in providing regulations that provide stability, integrity and trust, many companies are still unclear on how to operate in the blockchain space in Nigeria.

However, here are best practices from experts that can protect companies in an unclear regulatory field.

Build with compliance in mind

According to Onekilo, many blockchain companies, especially those dealing with cryptocurrencies, invest in what improves their bottom line rather than what ensures compliance.

“They will always say ‘compliance is expensive, let’s see how to make money first’, but one thing I always say is build with compliance in mind.” One way to build with regulation in mind is to seek expert guidance, she said.

Building with compliance in mind is what Nigerian blockchain payments company Zone has done. It is one of the few blockchain companies in Nigeria that has Regulations emerged It even works closely with regulators. Ifunanya Anamelechi, the company’s Vice President of Legal and Compliance, also shared some insights on how the company manages to remain compliant.

“We treat compliance as a cornerstone of our operations,” Annamilchi said. This means that Zone integrates compliance as an integrated function of the solution you have created.

You have a dedicated compliance team

Having a dedicated compliance team can help blockchain startups stay on top of regulation as it changes. Although the regulations regarding blockchain are not entirely clear, there are agencies that a company’s compliance team must communicate with regularly.

For example, Onyekelu shared that the Nigerian Financial Intelligence Unit (NFIU) will require a compliance specialist in the company who will periodically file money laundering reports.

“So you’re supposed to file suspicious activity and reports, and even if you don’t, you’re supposed to report that as well. You’ll inform them that you did business for a month, and you didn’t notice suspicious activity,” Onyekelo noted.

The compliance team is also important for KYC, due diligence, and transaction monitoring – processes that are important to regulators.

Actively involve organizers

Frequent collaboration with regulatory bodies is one way Zone remains compliant. According to Anamelechi, the region often engages regulators such as the Central Bank of Nigeria (CBN), the Financial Reporting Council and the Securities and Exchange Commission.

“Every time we look to deploy a product, we always have formal discussions and correspondence with CBN.”

She added that engaging regulators effectively helps the region understand priorities and regulatory frameworks.

Pay attention to regulatory changes

Although it is always said that regulation plays catch-up with innovation, regulation can sometimes change at such a pace that even innovative companies may not be able to catch up if they don’t pay attention.

Using the region as an example, Anamelechi narrated how the CBN enforced the routing of all PoS transactions through a Payment Terminal Services Aggregator (PTSA). As a payment facilitator on the blockchain, this meant that Zone had to start routing payments through the PTSA.

PTSA confirms the Point of Sale (PoS) registration details and ensures that they are suitable for executing transactions. This regulatory change was introduced in the wake of a rise in cases of Proof of Stake (PoS) fraud.

Compliance goes beyond what regulators ask you to do

According to Olaliyo Oladimeji, a corporate trade lawyer at blockchain companies and technology consultant, staying compliant goes beyond what regulators require of startups. It also makes sure that customers and investors are safe and confident in the product.

A company’s desire to comply can also be translated into its desire to keep customers safe as most regulatory requirements are geared toward user safety.

Olaleye recommends that startups engage legal professionals in the early stages of their business.

Whether it’s a cryptocurrency-centric company or one using blockchain technology for other applications, compliance and regulation could play an integral part of its success in 2025.