The Nigerian Securities and Exchange Commission (SEC), led by Dr. Emomotimi Agama, has introduced a proposed law to address unethical promotional practices by crypto influencers. The move seeks to combat the rise of misleading endorsements within the country’s crypto industry.
Under the proposed regulation, all crypto platforms and Virtual Asset Service Providers (VASPs) must obtain a license from the SEC before engaging in social media, television, or print media promotions. The law, set to be enforced from June 30, 2025, also mandates that crypto influencers disclose paid partnerships when promoting digital assets or services. Violators could face a fine of approximately $6,500 (₦10 million) or a sentence of up to three years.
Community Reaction
Prominent figures in Nigeria’s crypto community largely embraced the proposed policy, viewing it as a critical step in eliminating predatory practices by unscrupulous actors. Rume Ophi, a leading crypto analyst and educator, shared his perspective in an interview with Nairametrics.
While acknowledging the policy’s imperfections, Ophi described it as a positive move toward industry regulation. He urged the SEC to implement the policy immediately, arguing that bad actors have exploited the lack of regulation to promote fraudulent projects that have caused significant financial losses.
SEC Boosts Crypto Oversight
This recent development aligns with the SEC’s broader efforts to sanitize the crypto space and foster trust in the industry. The Nigerian SEC chairman commended President Bola Ahmed Tinubu’s pro-crypto stance, highlighting his commitment to industry growth through regulatory oversight. As part of this initiative, the SEC recently issued provisional operating licenses to two Nigerian-owned crypto exchanges, Busha and Quidax, signaling the start of a new regulatory phase for the sector.
The Commission revealed that several other companies are awaiting approval, although not all applicants may meet the criteria. During a meeting with applicants participating in the Regulatory Incubation (RI) and Accelerated Regulatory Incubation Programme (ARIP), Dr. Agama hinted that some crypto firms might fail to secure licenses due to non-compliance with the SEC’s requirements.