Cryptocurrency promoters must be licensed and approved by the Nigerian Securities and Exchange Commission (SEC) before promoting their products or services.
The Nigerian Securities and Exchange Commission (SEC) has updated its regulations on cryptocurrencies, adding requirements for advertising activities related to cryptocurrencies by Virtual Asset Service Providers (VASPs) and social media influencers.
In the Amended Digital Assets Regulations, SEC requires VASPs collaborating with third parties to advertise cryptocurrency products to be "pre-approved by the Commission." The regulations also require VASPs to ensure the third party complies with SEC's advertising rules.
This regulation applies to any VASP providing services to Nigerian residents and will be effective from June 30, 2025.
SEC's amendments also address the role of "Finfluencers" (financial influencers) in promoting cryptocurrency products and services.
Finfluencers must receive a "no-objection letter" from SEC before posting cryptocurrency advertisements. They must also verify if the company they are promoting is licensed by SEC.
Additionally, Finfluencers must disclose whether they are being paid to promote cryptocurrency products. Violations can result in a fine of at least 10 million naira (around $6,400) or up to three years in prison.
SEC also stated they will actively monitor blockchain advertisements to ensure compliance, and violations will lead to financial penalties.
SEC said the new regulations aim to "mitigate the risks" and address the growing prevalence of Finfluencers, preventing the sharing of unauthorized financial investment products on social media or other advertising channels.
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The article SEC Nigeria Tightens Regulations on Cryptocurrency Advertising first appeared on CoinMoi.
