In a decisive move to enhance the integrity of the digital asset landscape, the Nigerian Securities and Exchange Commission (SEC) has instituted a series of robust regulations aimed at influencers who endorse cryptocurrency-related products. These steps underscore the Commission’s commitment to fostering transparency and accountability within the burgeoning crypto market, which has seen a surge in popularity but has also attracted a myriad of unauthorized and potentially misleading promotions.
Under the newly established framework, influencers are mandated to verify that any cryptocurrency business they promote possesses the proper licensing issued by the SEC. This addition aims to mitigate the risk of unauthorized promotions, which have proliferated on various platforms as cryptocurrency gains mainstream traction. Additionally, influencers are now required to label their promotional content distinctly as sponsored, ensuring that audiences can readily discern commercial intent. Strikingly, failure to adhere to these stipulations could lead to severe repercussions, including hefty fines that may reach or exceed 10 million Naira (approximately $7,000), imprisonment for up to three years, or both.
The SEC has specified that the language used in promotional materials must be clear and accessible, disallowing any technical jargon that may alienate or confuse potential investors. The use of exaggerated claims—such as promises of guaranteed returns—will also be scrutinized under the new regulations. This change is particularly aimed at protecting novice investors who might be lured into dubious investments due to misleading information.
The SEC’s efforts extend beyond mere regulations. The body is set to implement an extensive monitoring strategy to oversee online promotions across multiple communication platforms including social media networks, television, radio, and even USSD services. Violators of these new guidelines will not only face financial penalties but could also be subjected to legal action, reflecting the SEC’s resolve to maintain order and trust in Nigeria’s financial markets.
This regulatory initiative coincides with similar measures adopted internationally. The UK’s Financial Conduct Authority (FCA) and France’s stringent certification requirements highlight a growing global consensus on the need for regulatory frameworks to govern influencer marketing of crypto products. The SEC’s alignment with these international efforts suggests a broader trend in which regulatory bodies are waking up to the complexities and risks posed by unregulated financial promotions.
In addition to new influencer regulations, the SEC is tightening its grip on Virtual Asset Service Providers (VASPs) in Nigeria. Newly instituted requirements compel these businesses to register with the SEC and comply with comprehensive governance, financial structuring, and periodic reporting practices, such as submitting trading data and audited statements. Moreover, the SEC has taken a firm stance against anonymity-enhanced cryptocurrencies, citing concerns over potential misuse and lack of accountability in transactions.
As these regulations take effect in June 2025, they represent a pivotal moment in Nigeria’s approach to cryptocurrency and influencer marketing. The SEC’s stringent rules are expected to usher in an era of increased transparency and investor protection, addressing the challenges posed by a rapidly evolving market that has, until now, operated with minimal oversight. With the risks associated with cryptocurrency promotions laid bare, stakeholders in the digital asset space— from influencers to consumers— are urged to adapt accordingly, ensuring a more sustainable and secure framework for the future of crypto in Nigeria.