The Nigerian Securities and Exchange Commission (SEC) has implemented new regulations to enhance oversight of cryptocurrency marketing and promotions. The objective of these revised regulations, which are scheduled to be implemented on June 30, 2025, is to enhance transparency and protect consumers in the swiftly expanding digital asset market.
Before engaging third-party service providers for promotional activities, Virtual Asset Service Providers (VASPs) must obtain prior sanction from the SEC under the revised framework. Furthermore, VASPs are required to guarantee that these partners rigorously comply with the commission’s marketing standards. The regulations are applicable to all VASPs that provide services to Nigerian residents.
Social media influencers, who are frequently referred to as “Finfluencers,” are a significant focus of the new regulations. Before publishing advertisements, influencers who are promoting cryptocurrency products are now required to obtain a “no-objection authorization” from the SEC. Additionally, they are required to confirm that the companies they endorse are licensed by the Securities and Exchange Commission (SEC). Transparency is additionally enforced by mandating that influencers disclose any compensation they receive for promotions. Noncompliance may lead to severe penalties, such as imprisonment for a maximum of three years or sanctions of up to 10 million Nigerian naira (approximately $6,400).
The Securities and Exchange Commission (SEC) has pledged to actively monitor digital asset advertisements on all platforms to guarantee compliance with the regulations. Enforcement actions, such as financial penalties and sanctions, will be implemented against violators.
The SEC’s revised regulations are a component of a more comprehensive strategy to regulate unlicensed crypto services. To date, Nigeria has authorized only two cryptocurrency exchanges: Busha Digital and Quidax Technologies. The Securities and Exchange Commission (SEC) has committed to prosecuting unregulated virtual asset service providers (VASPs) that provide services to Nigerians without the requisite licensing.
Nigeria’s objective is to achieve a balance between safeguarding its citizens from unregulated and potentially detrimental practices and promoting innovation in the crypto industry through the implementation of these measures. The SEC’s dedication to the establishment of a secure and transparent digital asset ecosystem is evidenced by the more stringent regulations.
