Nigerian SEC tightens rules on crypto marketing and promotions

The Nigerian Securities and Exchange Commission (SEC) has updated its rules for crypto-related marketing and promotions, targeting virtual asset service providers (VASPs) and social media influencers. Announced on December 16, 2024, the new regulations aim to ensure compliance and oversight in the digital asset sector.

VASPs engaging third-party marketers must obtain prior SEC approval and ensure compliance with its marketing guidelines. Social media influencers, or "Finfluencers," must secure a “no-objection authorization” from the SEC, verify the licensing of endorsed companies, and disclose paid promotions. Non-compliance could result in fines of at least 10 million naira ($6,400) or up to three years in jail.

The rules, effective June 30, 2025, extend to any VASP offering services to Nigerian residents. The SEC has also introduced provisions for cross-chain transfers, virtual asset advisory, and digital securities issuance, while banning anonymity-enhanced cryptocurrencies.

Currently, only Quidax Technologies and Busha Digital are licensed to operate in Nigeria. The SEC emphasized monitoring crypto ads to prevent unauthorized financial promotions. These measures are part of its broader effort to ensure a transparent and secure digital asset ecosystem.