Nigerian SEC warns influencers of new 3 year jail term for promoting ‘unlicensed’ crypto
The Nigerian Securities and Exchange Commission (SEC) has implemented stricter regulations for influencers promoting crypto products. Influencers must ensure their clients are SEC-licensed and label promotional content as sponsored. Non-compliance may result in fines of at least 10 million Naira (about $7,000), imprisonment for up to three years, or both. Promotions must use simple language, avoiding technical jargon and misleading claims. All advertisements require SEC approval before publication. The SEC aims to address concerns over unauthorized digital asset promotions across all communication platforms. Additionally, the SEC has tightened oversight on Virtual Asset Service Providers (VASPs), requiring registration and adherence to governance and reporting standards. The regulations will take effect in June 2025, enhancing transparency and investor protection in Nigeria's crypto sector.
