The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has expressed concern over the rising number of suspicious cryptocurrency-related transactions in West Africa, citing a report by GIABA that recorded $2.1 billion in such activities across the region in 2024.
Speaking at the West Africa Compliance Summit hosted by GIABA in Praia, Cape Verde, Agama highlighted the dual nature of the digital asset boom its rapid adoption alongside the increasing involvement of malicious actors.
He noted that “DeFi ‘rug pulls’ continue to defraud unsuspecting users. GIABA reported $2.1 bn in suspicious crypto-linked transactions in West Africa in 2024, with terror groups exploiting privacy coins to evade detection.”
According to Agama, investors have suffered significant losses due to “artificial crashes, unregistered exchanges absconding with funds, and inadequate oversight.”
He emphasised the critical need for regulation, stating, “Regulation, therefore, is not optional but an imperative.”
Agama explained that the SEC is ramping up efforts to supervise activities within the digital asset ecosystem, underlining the importance of regional collaboration to block channels used by criminals.
“We must harmonise our regulatory frameworks, share intelligence, and adopt best practices to close loopholes exploited by bad actors. A trader banned in Nigeria simply relocates to Ghana. ECOWAS must adopt a Unified VASP Licensing System,” he said.
He also revealed that Nigeria intends to implement AI-driven blockchain surveillance tools to monitor illicit activities while safeguarding consumers.
In addition, Agama disclosed the commission has rolled out a Ponzi scheme awareness campaign in response to the recent collapse of the CBEX platform, which defrauded many investors.
The campaign has already been executed in key areas of Abuja and Lagos, with further outreach planned across other states.
