Nigeria's Securities and Exchange Commission (SEC) has introduced stricter rules to target influencers who promote crypto-related products without transparency.
Under updated frameworkinfluencers should ensure that their crypto clients are licensed by the SEC before endorsing any product or service.
Additionally, all promotional content must be clearly labeled as sponsored. Failure to comply will carry severe penalties, including a fine of at least 10 million naira (approximately $7,000), imprisonment of up to three years, or both.
Influencers are also required to use plain language in their ads. The SEC cautions against using technical jargon, vague terms, or exaggerated promises such as “double your income” or “secure your future.”
The SEC continued that promotional materials must avoid claims that could mislead or confuse potential investors. In addition, all advertisements must receive the Commission's prior approval prior to publication.
The commission explained that the move addresses growing concerns about financial influencers promoting illicit digital asset investments. These regulations cover all communication platforms, including social media, television, radio and USSD channels.
The SEC announced that it will actively monitor online advertising and prosecute violators who violate these guidelines.
It is noteworthy that the move by the Nigerian SEC is in line with global trends. For example, the UK's Financial Conduct Authority (FCA) It proposed similar measures in 2023requires crypto ads to comply with legal standards. Similarly, France needs influencers Full certificates In responsible financial advertising before promoting crypto products.
Review of cryptographic regulations
In addition to the impactful regulations, the SEC has intensified its oversight of virtual asset service providers (VASPs) operating in Nigeria.
These companies must now register with the SEC and meet strict governance, financial and reporting standards. They must also submit regular transaction data, compliance reports and audited financial statements.
The SEC also prohibits issuance or promotion Cryptocurrencies with anonymity.
The updated regulations will take effect in June 2025 and represent a significant shift towards greater transparency and investor protection in the country's crypto ecosystem.
