Cryptocurrency Transactions Worth Over $2 Billion Under Scrutiny in West Africa - The Securities and Exchange Commission in Nigeria Increases Call for Collaborative Regulation at a Regional Level

In a bid to enhance financial security and foster technological growth, the Securities and Exchange Commission (SEC) of Nigeria is taking significant strides.

One of the commission's key initiatives is the expansion of YellowCard's Fiat Treasury Management Service within the country. This service aims to streamline financial transactions and provide a more secure platform for investors.

Recently, the SEC launched a Ponzi awareness campaign, following the collapse of the CBEX scheme that defrauded many investors. The campaign, conducted across key locations in Abuja and Lagos, aims to educate the public about the dangers of Ponzi schemes and protect them from potential financial losses. Plans are in place to extend this campaign to other states.

The SEC boss, Dr. Emomotimi Agama, has emphasised the need for harmonising regulatory frameworks, sharing intelligence, and adopting best practices to close loopholes exploited by bad actors. He has also called for support in building capacity for law enforcement, regulators, and the judiciary to better understand and respond to evolving financial technologies.

Recognising the growing influence of digital assets, SEC Nigeria is reviewing its Digital Assets Regulatory Framework. The review aims to tighten controls over Peer-to-Peer platforms and crypto exchanges, ensuring a secure and regulated environment for all investors.

In a move towards regional cooperation, Dr. Agama has suggested that the Economic Community of West African States (ECOWAS) should adopt a Unified Virtual Asset Service Provider (VASP) Licensing System. This would help regulate foreign VASPs operating illegally in Nigeria and the sub-region without registration or oversight.

SEC Nigeria is seeking support from ECOWAS, the Financial Action Task Force (FATF), and global crypto exchanges to implement know-your-customer (KYC) and anti-money laundering (AML) standards. This collaboration is crucial in combating financial crimes and maintaining the integrity of the financial system.

Lastly, Nigeria plans to deploy AI surveillance tools for blockchain analytics to trace illicit activity while ensuring consumer protection. This innovative approach will help in detecting and preventing financial crimes, thereby fostering a secure and thriving financial ecosystem.

Dr. Agama's participation in the 2025 collecting conference in Cape Verde, organised by the Network of Procurement in International Organisations (NPIO), underscores Nigeria's commitment to international collaboration in financial regulation and technology advancement.

Cryptocurrency Transactions Worth Over $2 Billion Under Scrutiny in West Africa - The Securities and Exchange Commission in Nigeria Increases Call for Collaborative Regulation at a Regional Level