Nigeria Updates Crypto Regulations for VASPs and Influencers

According to PANews, the Nigerian Securities and Exchange Commission (SEC) has revised its cryptocurrency regulations, introducing new requirements for Virtual Asset Service Providers (VASPs) and social media influencers involved in crypto-related marketing. The updated digital asset rules mandate that VASPs collaborating with third-party service providers to promote their crypto products must obtain prior approval from the commission. Additionally, VASPs are required to ensure that these third-party providers adhere to the marketing rules established by the SEC. These regulations apply to any VASP offering services to residents of Nigeria and are set to take effect on June 30, 2025. The revisions also address the role of social media influencers in promoting cryptocurrency products and services. Influencers must secure a 'no objection authorization' from the Nigerian SEC before publishing digital asset advertisements. Furthermore, they are obligated to verify whether the companies they promote are licensed by the Nigerian SEC. Financial influencers must also disclose if they receive compensation for promoting the crypto products or services. Non-compliance with these regulations could result in penalties, including a minimum fine of 10 million Nigerian Naira (approximately $6,400) or up to three years of imprisonment.