The Nigerian Securities and Exchange Commission (SEC) has recently announced new regulations that will govern the practices of crypto influencers in the country. These regulations are an update to the previous rules that were in place in the industry. According to the new rules, all crypto platforms must obtain a license from the SEC before they can engage in any promotional activities. This includes promotions across various media channels such as TV, radio, social media, and print media.
One of the key requirements under the new regulation is that crypto influencers must disclose any financial benefits they receive for promoting a platform or asset. Failure to comply with these rules could result in a fine of up to 10 million naira or a jail term of up to three years. The new regulations are set to take effect on June 30, 2025 and have been seen as a necessary move to clean up the crypto industry in Nigeria by eliminating exploitative practices.
The document titled “Specific Requirements for Third-Party and Social Media Promotions” outlines the process for crypto companies to engage the services of influencers. Companies must first send a written letter to the SEC and ensure that the influencers adhere to the rules set out by the commission. Influencers are required to provide a detailed copy of the agreement letter before commencing any promotional activities and must disclose if they have been paid for their services.
The SEC has stated that it will continue to monitor promotional activities in the sector to ensure compliance with its regulations. Violation of these rules could result in sanctions such as financial penalties and other punitive measures. The commission has also pledged to conduct regular reviews of its rules to ensure they are aligned with global trends and promote innovation in the industry.
Prominent crypto analysts have discussed the new regulations, with many viewing them as a positive step towards ensuring integrity in the industry. Crypto educator Rume Ophi has praised the new laws, stating that they will help reduce the number of questionable projects being advertised. Ophi believes that regulations are necessary to prevent bad actors from exploiting the lack of oversight in the industry and protect individuals from financial losses.
The SEC Chairman has expressed gratitude to President Bola Ahmed Tinubu for his support of the crypto industry and role in his appointment. Two crypto firms, Busha and Quidax, have become the first to secure licenses to operate in the country, signaling a new era for crypto in Nigeria. Despite the government’s ban on crypto assets, the country has one of the highest adoption rates on the continent, with most transactions occurring through peer-to-peer channels due to banks’ reluctance to provide services to crypto platforms.
