Nigeria’s Securities and Exchange Commission (SEC) has instituted new legislation that will govern cryptocurrency influencers within the nation’s industry.
The new laws that the Nigerian Securities and Exchange Commission (SEC) has announced will govern the activities of crypto influencers in the country. The introduction of this new regulation signifies an improvement over the industry’s previous regulations. The new development mandates that all crypto platforms obtain a license from the entity prior to engaging in any promotional activities. This encompasses advertising in print, social media, radio, and television.
Crypto influencers are required to disclose any financial incentives they receive for advocating for a platform or asset. According to the statement, violators may be subject to a fine of up to 10 million naira or imprisonment for a maximum of three years. June 30, 2025, will mark the implementation of the new regulation. The new SEC laws have been perceived as a necessary cleansing of the crypto industry in Nigeria, as they eliminate exploitative practices.
The commission explicitly stated that the influencers involved must first submit a comprehensive duplicate of the agreement letter prior to its endorsement. It is also imperative that they verify that the products and platforms they intend to influence have obtained all necessary licenses from the commission. Influencers are also required to disclose to their followers whether they received compensation for their services or equipment prior to performing the service.
Lastly, the SEC stated that it will persist in its oversight of promotional activities within the sector to guarantee that they are consistent with the Commission’s regulations. In the event that any company or influencer is found to be in violation of its regulations, the SEC has announced that it will impose sanctions on the affected parties, including financial penalties and other measures. The commission also committed to conducting a regular evaluation of its regulations to ensure that they are consistent with global trends, thereby encouraging innovation in the industry.
The new rule has been the subject of discussion among prominent crypto analysts, with the majority of them providing candid assessments of its deficiencies. Rume Ophi, a crypto educator, is one such individual. Ophi asserts that the new laws will guarantee industry integrity, describing them as a positive development.
As per Ophi, the crypto industry is not an exception to the rule that the majority of technology industries are consistently imperilled by malicious actors. Consequently, it is imperative to establish the requisite legislation to monitor the activities of individuals who promote entities and products in the sector.
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