PANews reported on December 19, according to Cointelegraph, that the Nigerian Securities and Exchange Commission has updated its cryptocurrency rules to add requirements for virtual asset service providers (VASP) and social media influencers regarding cryptocurrency-related marketing promotions. In the revised digital asset rules, the regulator stated that VASPs cooperating with third-party service providers to promote their cryptocurrency products must 'obtain the Commission's approval in advance.' The rule also requires VASPs to ensure that third-party providers comply with the marketing rules set by the SEC. This rule applies to any VASP providing services to residents of the country and is scheduled to take effect on June 30, 2025.
The revision of this rule also involves the role of social media influencers in promoting cryptocurrency products and services. Cryptocurrency influencers must obtain a 'no objection authorization' from the Nigerian Securities and Exchange Commission before posting advertisements for digital assets. Furthermore, they must verify whether the companies they promote are licensed by the Nigerian Securities and Exchange Commission. Financial influencers must also disclose whether they receive compensation for promoting the cryptocurrency products or services they endorse. Non-compliance with the regulations may result in penalties, such as a minimum fine of 10 million Nigerian Naira (approximately $6,400) or a maximum of three years in prison.