Nigerian Securities and Exchange Commission rolled out new rules that target those who are promoting cryptocurrency-related products with no transparency.
Influencers are required to ensure that their clients have been licensed by SEC prior to endorsing a product or service.
All promotional material must also be clearly labelled as sponsored. In the event of non-compliance, severe penalties will be imposed, such as a penalty of 10,000,000 Naira, which is approximately $7000, and/or imprisonment up to a maximum of three years.
Influencers should also stick to simple, straightforward language. SEC cautions users against technical jargon or ambiguous language, as well as exaggerated claims. “double your earnings now”If you want to know more about a specific word, please click here. “secure your future.”
SEC also stated that all promotional material must not make claims that may confuse or mislead potential investors. All advertisements must be approved by the Commission prior to publication.
This move was made to address growing concerns over financial influencers who promote unauthorized investments in digital assets. These regulations apply to all platforms of communication, such as social media, TV, radio and USSD.
SEC has stated it will monitor and enforce these guidelines.
Notably, the Nigerian SEC’s move aligns with global trends. For instance, the United Kingdom’s Financial Conduct Authority (FCA) introduced similar measures in 2023, requiring crypto promotions to meet legal standards. In France, influencers must complete certifications on responsible financial advertising prior to promoting cryptocurrency products.
Cryptoregulation overhaul
The SEC, in addition to the influencer regulation, has strengthened oversight over Virtual Asset Service Providers operating in Nigeria.
The SEC has now mandated that these companies register and comply with strict standards of governance, reporting and financial disclosure. These firms must now submit trading data and compliance reports as well as audited financials statements.
SEC prohibits the sale or promotion of cryptocurrencies that enhance anonymity.
These updated regulations will take effect in June 2025, signaling a significant shift toward greater transparency and investor protection in the country’s crypto ecosystem.
Posted In: Nigeria, Featured, Regulation Author 
Oluwapelumi Adejumo
Oluwapelumi is a believer in Bitcoin. He gives insights into a variety of topics, including DeFi hacking, mining, and culture.
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Liam ‘Akiba’ Wright
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