The Nigerian Securities and Exchange Commission (SEC) has announced new laws that will regulate the practices of cryptocurrency influencers in the country. The new regulations represent an update to the previous rules governing the industry. According to the new development, all cryptocurrency platforms must obtain a license from the commission before they can carry out any promotional activities. This includes promotions via television, radio, social media, and other print media.
As part of the requirements, crypto influencers are mandated to disclose any financial benefits they have enj for promoting a platform or asset. Failure to comply could result in a fine of N10 million or imprisonment of up to three years, the statement revealed. The new regulations come into effect on June 30, 2025. The new SEC laws are seen as a much-needed clean-up of the crypto industry in Nigeria, removing exploitative practices.
Explaining the Nigerian Securities and Exchange Commission Act on Cryptocurrency Influencers
According to the document titled “Specific Requirements for Third-Party Promotions and Social Media,” any cryptocurrency company that wants to use influencer services must first submit a written letter to the commission. The SEC also said that influencers must strictly adhere to the rules set forth, noting that the platform must ensure that the rules are followed.
The Commission stated that participating influencers must first submit a detailed copy of the letter of agreement before it can be approved. They must also ensure that the products and platforms they intend to influence have obtained all the required licenses from the Commission. Influencers are also required to disclose to their followers whether they have been paid for their services or tools before performing the said service.
Finally, the SEC said it will continue to monitor promotional activities in the sector to ensure they are in line with the commission’s regulations. If any company or influencer is found to be in violation of its rules, the SEC said it will impose sanctions on the affected parties, which will include financial and other penalties. The commission also promised to periodically review its rules to ensure they are in line with global trends and promote innovation in the industry.
Industry experts discuss new rule by Nigeria Securities and Exchange Commission
Prominent cryptocurrency analysts have discussed the new rule, with most offering their honest assessments of its flaws. One such person is cryptocurrency guru Rom Ove. According to Ove, the new rules will ensure integrity in the industry, noting that they are a step forward.
“Before now, the industry has seen numerous instances of bad actors exploiting the lack of regulation, leading individuals to significant financial losses. Introducing a policy requiring promotions to come from licensed entities will significantly reduce the number of questionable projects being advertised,” said Ove.
According to Ove, there is always a case where most tech industries are threatened by bad actors, and the cryptocurrency industry is no exception. As such, there is a need for laws to monitor the activities of people who promote entities and products in this sector.
Additionally, the SEC expressed its gratitude to President Dent Ahmed Tinubu for his pro-crypto stance and support for the industry. He stated that his appointment as SEC Chairman was made possible by Dent’s influence. According to the SEC, two cryptocurrency companies, Pusha and Quidax, are the first two to be licensed to operate in the country, highlighting the new cryptocurrency climate in the country.
Meanwhile, the government’s perception of cryptocurrencies remains relatively unknown. Despite a ban on the asset, the country has one of the highest adoption rates on the continent. However, most of these transactions are done via peer-to-peer, with most banks unwilling to offer their services to cryptocurrency platforms, citing government orders.