YEREVAN (CoinChapter.com) — The Nigerian Securities and Exchange Commission (SEC) has implemented new crypto marketing regulations. These rules target virtual asset service providers (VASPs) and social media influencers, tightening the promotion of digital assets in the country.
New Crypto Marketing Regulations for VASPs
The updated Nigerian SEC crypto rules require VASPs to obtain prior approval from the SEC before engaging third-party service providers for promotional activities. These third-party providers must strictly comply with the marketing regulations outlined by the SEC.
Nigerian SEC Digital Asset Amendments. Source: SEC NIGERIA
The rules are applicable to all VASPs offering services to Nigerian residents, regardless of their location. Enforcement of these regulations is scheduled to begin on June 30, 2025. The SEC’s primary goal is to ensure transparency and compliance, minimizing risks for crypto investors in Nigeria.
VASPs are now expected to provide clear and accurate promotional content to prevent misinformation. These measures are part of the SEC’s strategy to regulate the rapidly growing crypto market.
Finfluencers in Nigeria Face New SEC Regulations
Social media influencers, or “Finfluencers,” promoting digital assets are now subject to strict oversight under the crypto marketing regulations. They must secure a “no-objection authorization” from the SEC before publishing any advertisements for cryptocurrency products or services.
The rules also require influencers to verify that the companies they promote hold valid licenses from the SEC. Additionally, they must disclose if they received payments for such promotions. Failure to comply can lead to significant penalties, including a minimum fine of 10 million Nigerian naira (approximately $6,400) or up to three years in prison.
The SEC announced it would actively monitor promotional content for compliance. Violations could result in sanctions and financial penalties, reinforcing the importance of adhering to the crypto marketing regulations.
SEC-Approved Exchanges Operating in Nigeria
As of now, only two exchanges are fully regulated under the Nigerian SEC crypto rules. On Aug. 29, 2023, the SEC issued a provisional operating license to Quidax Technologies, an African crypto exchange. Another platform, Busha Digital, also received SEC approval to operate in Nigeria.
Source: SEC Nigeria
These licenses allow the exchanges to function legally as registered platforms within the country. However, the SEC has emphasized that any entity offering crypto services without proper licensing will face enforcement actions.
SEC Takes Action Against Unregulated Crypto Transactions
The SEC has intensified its efforts to combat unregulated crypto transactions in Nigeria. On Sep. 9, 2023, SEC Director-General Emomotimi Agama reiterated the agency’s commitment to enforcing compliance. The SEC plans to take action against businesses operating without the necessary approvals.