The Director-General of Nigeria’s Securities and Exchange Commission (SEC), Emomotimi Agama, has raised alarms over a staggering $2.1 billion worth of suspicious cryptocurrency transactions recorded in West Africa during 2024. Speaking at the West Africa Compliance Summit organized by the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA) in Praia, Cape Verde, Agama stressed that while digital assets offer innovation, they also open doors for criminal abuse.
Agama highlighted the growing threat of DeFi “rug pulls,” unregulated exchanges, and artificial market crashes that have resulted in widespread investor losses. He revealed that privacy coins are increasingly being used by terrorist groups to avoid detection, further complicating enforcement efforts across the region. These challenges, he insisted, reinforce the urgent need for comprehensive oversight in the digital asset space.
To combat the threat, the SEC is intensifying surveillance on virtual asset activities. Agama called for regional collaboration, suggesting a unified Virtual Asset Service Provider (VASP) licensing system within ECOWAS to prevent bad actors from exploiting regulatory inconsistencies. He emphasized that cross-border cooperation is critical, especially since banned traders in one country can easily operate in neighboring states.
Nigeria, according to Agama, is preparing to deploy AI-driven surveillance tools for blockchain analytics to monitor illicit activities and safeguard investors. These technologies are expected to enhance transparency and enforcement across digital financial markets while preserving user protection.
In response to recent investor scams, the SEC has also launched a national awareness campaign on Ponzi schemes, following the collapse of the CBEX investment platform. The campaign has already reached audiences in Abuja and Lagos, with further outreach planned for other parts of the country to educate the public and reduce vulnerability to crypto-related fraud.
Source: Punch