The Nigerian Securities and Exchange Commission (SEC) recently announced new regulations that will govern the practices of crypto influencers in the country. These laws represent an update to the previous rules that were in place, aiming to bring more transparency and integrity to the industry. Under the new regulations, all crypto platforms are required to obtain a license from the SEC before engaging in any promotional activities. This includes promotions on TV, radio, social media, and other print media channels.
One of the key requirements for crypto influencers is to disclose any financial benefits they receive for promoting a platform or asset. Failure to comply with these regulations could result in a hefty fine of up to 10 million naira or even a prison sentence of up to three years. The new SEC laws are set to take effect on June 30, 2025, and are seen as a necessary step to weed out exploitative practices in the crypto industry in Nigeria.
The SEC’s document titled “Specific Requirements for Third-Party and Social Media Promotions” outlines the process for crypto companies to engage influencers. Companies must first submit a written letter to the commission before enlisting the services of influencers. The influencers, in turn, must adhere strictly to the rules set out by the SEC and ensure that the platforms they promote have obtained all the necessary licenses from the commission. Additionally, influencers must disclose to their followers if they are being compensated for their services.
The SEC has emphasized that it will closely monitor promotional activities in the sector to ensure compliance with its regulations. Any company or influencer found in violation of the rules will face sanctions, including financial penalties and other measures. The commission has also committed to conducting periodic reviews of its regulations to align with global trends and foster innovation in the industry.
Industry experts have weighed in on the new SEC rule, with many acknowledging its importance in promoting integrity in the crypto industry. Crypto educator Rume Ophi praised the regulations for addressing the issue of bad actors taking advantage of the lack of regulation. Ophi emphasized the need for laws to regulate the activities of individuals promoting projects and products in the sector to protect investors from potential financial losses.
The SEC Chairman expressed gratitude to President Bola Ahmed Tinubu for his support of the crypto industry, noting that his appointment was made possible through the president’s influence. Two crypto firms, Busha and Quidax, have become the first to secure licenses to operate in the country, signaling a new era for crypto in Nigeria.
Despite the government’s unclear stance on crypto, Nigeria has emerged as one of the leading adopters of the technology in Africa. However, most crypto transactions in the country occur through peer-to-peer channels, as many banks are reluctant to provide services to crypto platforms due to government directives.
For those looking to enter the Web3 industry, landing a high-paying job may be achievable within 90 days with the right roadmap. Stay tuned for more updates on the evolving crypto landscape in Nigeria.