The Nigerian Securities and Alternate Fee (SEC) has rolled out stricter guidelines concentrating on influencers selling crypto-related merchandise with out transparency.
Beneath the up to date framework, influencers should guarantee their crypto shoppers are licensed by the SEC earlier than endorsing any services or products.
Moreover, all promotional content material have to be clearly labeled as sponsored. Failure to conform will entice extreme penalties, together with a tremendous of no less than 10 million Naira (roughly $7000), imprisonment of as much as three years, or each.
Influencers are additionally required to make use of easy language of their promotions. The SEC warns towards utilizing technical jargon, ambiguous phrases, or exaggerated guarantees like “double your earnings now” or “safe your future.”
The SEC continued that promotional supplies should keep away from claims that might mislead or confuse potential traders. Moreover, all commercials should obtain prior approval from the Fee earlier than publication.
The Fee defined that this transfer addresses rising issues about monetary influencers selling unauthorized digital asset investments. The rules cowl all communication platforms, together with social media, tv, radio, and USSD channels.
The SEC acknowledged that it’ll actively monitor on-line promotions and prosecute violators who breach these directives.
Notably, the Nigerian SEC’s transfer aligns with world developments. As an illustration, the UK’s Monetary Conduct Authority (FCA) launched comparable measures in 2023, requiring crypto promotions to satisfy authorized requirements. Equally, France requires influencers to full certifications in accountable monetary promoting earlier than selling crypto merchandise.
Crypto regulation overhaul
Along with influencer rules, the SEC has tightened oversight on Digital Asset Service Suppliers (VASPs) working in Nigeria.
These companies should now register with the SEC and cling to stringent governance, monetary, and reporting requirements. They need to additionally submit common buying and selling knowledge, compliance stories, and audited monetary statements.
The SEC additionally prohibits issuing or selling anonymity-enhanced cryptocurrencies.
These up to date rules will take impact in June 2025, signaling a major shift towards larger transparency and investor safety within the nation’s crypto ecosystem.