Stricter Rules for Crypto Influencers in Nigeria
The Nigerian Securities and Exchange Commission (SEC) has implemented new regulations targeting influencers who promote crypto-related products without transparency. These rules aim to protect investors and ensure ethical marketing practices in the crypto industry.
Key Points of the New Regulations:
- Crypto clients must be licensed by the SEC before influencers can endorse any product or service.
- All promotional content must be clearly labeled as sponsored to avoid misleading investors.
- Failure to comply with the regulations may result in severe penalties, including fines, imprisonment, or both.
- Influencers must use simple language in their promotions and avoid exaggerated claims to maintain transparency.
- Prior approval from the SEC is required for all advertisements before publication.
Global Trends in Crypto Regulation
The Nigerian SEC’s move aligns with global trends in regulating crypto promotions. Countries like the United Kingdom and France have also introduced similar measures to ensure legal compliance and investor protection in the crypto market.
Impact on Virtual Asset Service Providers (VASPs)
In addition to influencer regulations, the SEC has tightened oversight on VASPs operating in Nigeria. These firms are now required to register with the SEC and adhere to strict governance, financial, and reporting standards. The regulations also prohibit the promotion of anonymity-enhanced cryptocurrencies to enhance transparency in the market.
Overall, these regulatory changes aim to promote transparency and investor protection in Nigeria’s crypto ecosystem. The new regulations will come into effect in June 2025, marking a significant shift towards a more regulated and secure crypto market in the country.
