The Nigerian Securities and Exchange Commission (SEC) has recently introduced new regulations that will govern the activities of crypto influencers in the country. These laws are set to update the existing rules in place and aim to bring more transparency and accountability to the industry. Under the new regulations, all crypto platforms are required to obtain a license from the SEC before engaging in any promotional activities. This includes promotions on various platforms such as TV, radio, social media, and print media.
One of the key requirements for crypto influencers under the new regulations is to disclose any financial benefits they receive for promoting a platform or asset. Failure to comply with these regulations could result in a hefty fine of up to 10 million naira or even a jail term of up to three years. The new laws are expected to come into effect on June 30, 2025, and are seen as a necessary step to weed out exploitative practices within the crypto industry in Nigeria.
The SEC has outlined specific requirements for third-party and social media promotions in a document titled “Specific Requirements for Third-Party and Social Media Promotions.” According to this document, any crypto company looking to engage the services of influencers must first submit a written letter to the commission. The influencers must then adhere strictly to the rules set out by the SEC and ensure that the promoted products and platforms have obtained the necessary licenses from the commission.
The SEC also emphasized the need for influencers to disclose whether they have been compensated for their services before carrying out any promotional activities. The commission stated that it will continue to monitor promotional activities in the sector to ensure compliance with its regulations. Any violations of the rules will result in sanctions, including financial penalties and other punitive measures.
Industry experts have weighed in on the new regulations, with many acknowledging the importance of ensuring integrity in the industry. Crypto educator Rume Ophi praised the new laws for their potential to reduce the promotion of questionable projects and protect investors from financial losses. The SEC Chairman expressed appreciation to President Bola Ahmed Tinubu for his support of the industry, highlighting the positive steps being taken to regulate the crypto space in Nigeria.
Despite the country’s high adoption rate of crypto assets, the government’s stance on the industry remains unclear. While peer-to-peer transactions are common due to banks’ reluctance to provide services to crypto platforms, the licensing of firms like Busha and Quidax signals a new era for crypto in Nigeria. As the SEC continues to review and update its regulations to align with global trends, the future of the crypto industry in Nigeria looks promising.