The Nigerian Securities and Exchange Commission (SEC) has introduced sweeping updates to its Digital Asset Rules, aiming to enhance oversight of crypto-related marketing and promotions. The revised rules, announced recently, target virtual asset service providers (VASPs) and social media influencers—popularly known as “Finfluencers”—as the Nigerian SEC looks to bolster consumer protection in the country’s fast-evolving crypto market.
Marketing Oversight for VASPs
Under the new regulations, VASPs engaging third-party providers to promote their products must obtain prior approval from the SEC. Additionally, these providers must strictly adhere to the marketing guidelines set by the Commission.
The SEC’s rules apply to any VASP offering services to Nigerian residents and are slated to take effect on June 30, 2025. By imposing these measures, the SEC aims to create a safer environment for crypto adoption while ensuring that promotions meet regulatory standards.
In a bid to regulate the growing role of social media influencers in the crypto space, the SEC has mandated that Finfluencers must secure a “no-objection authorization” before promoting digital assets. Influencers are also required to verify whether the companies they endorse are licensed by the SEC and must disclose if they receive payment for their promotions.
Violations of these rules come with hefty consequences, including a minimum fine of 10 million Nigerian naira (approximately $6,400) or imprisonment of up to three years. The SEC emphasized that it will actively monitor crypto ads and enforce penalties for non-compliance, including sanctions and financial fines.
Nigerian SEC Curbing Misleading Promotions
The SEC highlighted that the revised rules aim to address the growing influence of financial influencers and prevent the promotion of unauthorized investment schemes on social media and other marketing platforms. According to the regulator, the move seeks to curb the risks posed by misleading crypto promotions, which have surged in popularity in recent years.
Currently, only two exchanges are regulated in Nigeria. On August 29, the SEC issued its first provisional license to African crypto exchange Quidax Technologies, followed by a license for Busha Digital. These approvals mark a significant step in Nigeria’s efforts to regulate the crypto industry, allowing these platforms to operate as registered exchanges.
In a related development, the SEC announced on September 9 its intention to take enforcement action against businesses involved in unregulated crypto transactions. Emomotimi Agama, the SEC’s Director-General, affirmed that the Commission would clamp down on entities offering crypto services to Nigerians without proper authorization.
