Warning Issued by Nigerian Securities Regulator Targets Influencers Promoting Unregistered Digital Assets
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2 min read
Title: Nigeria’s Securities and Exchange Commission Issues Strong Warning to Influencers Promoting ‘Unlicensed’ Crypto Assets
In a move aimed at curbing the proliferation of unregistered digital assets in the country, Nigeria’s Securities and Exchange Commission (SEC) has issued a stern warning to social media influencers who promote “unlicensed” cryptocurrencies.
As part of the commission’s efforts to protect investors from potential financial losses and prevent market instability, SEC Chairman Gwarzo Lamido warned that anyone found promoting unregistered digital assets could face severe penalties, including a maximum three-year jail term.
According to Oluwapelumi Ad-iofu, an editor at CryptoSlate, this development underscores the importance of regulatory oversight in the rapidly evolving crypto space. “The Nigerian SEC’s warning serves as a timely reminder that influencers and content creators must prioritize transparency and accuracy when promoting digital assets,” he emphasized.
Wright Akiba, Editor-in-Chief at CryptoSlate, added that this move aligns with the global trend towards stricter regulations for crypto-related activities. “As the crypto market continues to grow in popularity, regulatory bodies around the world are taking a closer look at the role of social media influencers in promoting digital assets,” he noted.
Under Nigeria’s existing laws and regulations, any entity involved in securities trading must first register with the SEC. However, many cryptocurrency projects have failed to comply with these requirements, leading to concerns about investor safety and market integrity.
To avoid falling foul of the law, influencers are advised to only promote registered digital assets that have been deemed safe for public investment by regulatory bodies such as the Nigerian SEC. Failure to do so could result in serious legal consequences.
As part of its efforts to educate investors and protect them from potential financial losses, CryptoSlate will continue to provide insightful analysis on the crypto market, as well as updates on regulatory developments around the world.
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Source: cryptoslate.com
