The Nigerian Securities and Exchange Commission (SEC), led by Dr. Emomotimi Agama, has stated that all crypto influencers must disclose paid promotions to their audience or face penalties.
This was disclosed in its new regulation introduced to address the activities of crypto influencers promoting dubious projects.
The law mandates that all crypto platforms or Virtual Assets Service Providers (VASPs) secure a license from the SEC before engaging in promotions on social media, television, or print.
This regulation is set to take effect on June 30, 2025.
Under the new guidelines, crypto influencers are required to disclose any paid promotions to their audience. Failure to comply could result in severe penalties, including a N10 million fine and up to three years in jail.
The regulation also specifies that VASPs must obtain prior approval from the SEC before using third parties for promotional activities.
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Influencers promoting tokens or platforms must ensure that the VASPs they represent are licensed by the SEC.
“Finfluencers who receive compensation to promote digital asset products or services shall disclose this arrangement to their followers. Failure to do so will result in a penalty of not less than 10 million, imprisonment for up to three years, or both,” stated the SEC directive.
It added, “Finfluencers shall before engaging in any promotional activities verify that both the VASP, products and services they intend to promote are licensed or approved by the commission.”
The law has been welcomed by stakeholders in Nigeria’s cryptocurrency space, who see it as a necessary step to eliminate fraudulent practices and bring order to the growing industry.
The SEC emphasized that transparency and adherence to these rules will help protect investors while ensuring a safer and more reliable crypto ecosystem in Nigeria.
