The Nigerian Securities and Exchange Commission (SEC), under the leadership of Dr. Emomotimi Agama, has proposed a new law aimed at regulating the activities of crypto influencers. The law, set to take effect on June 30, 2025, requires all crypto platforms or Virtual Assets Service Providers (VASPs) to obtain a license from the SEC before promoting their services on social media, television, or print.
The new regulation mandates that crypto influencers disclose any paid promotions to their audience. Failure to comply could result in severe penalties, including a fine of N10 million and up to three years in jail. The SEC’s directive also specifies that VASPs must obtain prior approval from the SEC before engaging third parties for promotional activities.
Rume Ophi, a leading crypto analyst and educator in Nigeria, commented on the new law, stating, “The policy, although not perfect, is a step in the right direction. It makes a whole lot of sense to start right now because before now we have had a lot of bad actors and players in the industry who don’t want anything regulated so they can also promote projects that have led people to lose their money. This will shut the door for people who are experts in promoting terrible projects.”
The SEC’s move has been welcomed by stakeholders in Nigeria’s cryptocurrency space, who see it as a necessary step to eliminate fraudulent practices and bring order to the growing industry. Dr. Agama, the SEC Chairman, recently praised President Bola Tinubu for his pro-crypto stance, noting that the appointment of a cryptocurrency enthusiast as SEC DG aligns with Tinubu’s vision for crypto-assets.
The new law is part of Nigeria’s broader efforts to regulate the cryptocurrency market and protect investors from dubious schemes. The SEC emphasized that transparency and adherence to these rules will help create a safer and more reliable crypto ecosystem in Nigeria.
