Stricter Rules on VASPs for Marketing Activities
The Nigerian Securities and Exchange Commission (SEC) has changed its Digital Asset Rules and introduced stringent measures for the marketing promotions of crypto products by VASPs. From June 30, 2025, onwards, a VASP would have to obtain prior approval from the SEC before using third-party services to market crypto products. Moreover, such third-party service providers should be compliant with the SEC’s marketing requirements.
The new rules affect all VASPs offering services to Nigerian residents, marking the most significant step toward regulating the fast-growing crypto industry in the country.
Restrictions on Finfluencers
Social media influencers, better known as “Finfluencers, are also a key component of the revised rules unveiled by the SEC. According to the new rules, Finfluencers must obtain “no-objection authorization” from the SEC before advertising any crypto products or services.
Besides securing clearance, influencers are supposed to check if the businesses they promote are registered with the SEC. They must also indicate whether they were paid to promote the product or business. Anyone found violating the new regulations risks paying at least 10 million naira ($6,400) or a three-year prison sentence.
The SEC said it would actively police crypto ads, along with imposing sanctions and financial penalties for non-compliance.
Threat of “Menace”
The SEC described the new rules as part of “curbing the menace posed by unregulated personalities and influencers” who promote unauthorized crypto products. The updated rules will fight against the proliferation of misinformation and unauthorized financial investment opportunities on social media and other marketing platforms.
Few Regulated Exchanges
Currently, only two crypto exchanges are regulated in Nigeria, and they are Quidax Technologies and Busha Digital. Quidax got its provisional operating license on August 29, 2023. Also, Busha Digital is approved to operate the country as a registered exchange.
Enforcement Actions Against Unregulated VASPs
The SEC has emphasized its plans to crack down on unregulated VASPs. In September 2023, SEC Director-General Emomotimi Agama announced that the agency would take enforcement actions against businesses providing crypto services without the necessary permits.
These measures underscore Nigeria’s commitment to safeguarding its financial system from risks associated with unregulated cryptocurrency activities, while fostering a more structured and compliant crypto ecosystem.
