- Warning to Influencers: The Securities and Exchange Commission (SEC) has cautioned celebrities and influencers against promoting unregistered digital asset platforms and meme coins, emphasizing the importance of regulatory compliance.
- Registration Requirements: The SEC Director-General, Emomotimi Agama, highlighted that the Investments and Securities Act 2025 mandates registration requirements for digital asset platforms to promote transparency and trust.
- Crackdown on Illicit Activities: The SEC aims to curb illicit activities such as Ponzi schemes, pump and dump tokens, and unregistered exchanges, ensuring a safer environment for investors.
- Consequences of Non-Compliance: Agama emphasized that if a platform is not registered, it is considered illegal, and the law will be enforced.
The SEC’s warning follows the sudden collapse of the CBEX crypto trading platform, which raised concerns about the legitimacy and solvency of unregistered platforms. Users reported withdrawal difficulties, leading to speculation about potential Ponzi scheme operations ¹.
The SEC’s stance underscores its commitment to safeguarding investors in the rapidly evolving digital asset landscape. By enforcing registration requirements and cracking down on illicit activities, the SEC aims to foster transparency and trust in the industry. Influencers and celebrities are now expected to exercise caution when promoting financial products, ensuring they comply with regulatory requirements.
