The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has expressed concern over the growing threat of digital assets fraud, warning that it poses a significant challenge to market integrity and undermines investor confidence.
Speaking at an event to mark African Union Anti-Corruption Day, Dr. Agama noted that digital innovation transforms financial systems, but also brings new challenges, particularly the rise of virtual asset fraud and sophisticated investment scams exploiting unsuspecting investors.
The SEC DG stated that the Commission remains committed to strengthening investor education, enhancing regulatory frameworks, and fostering cross-border collaboration to combat corruption and illicit financial flows.
He emphasized that the Investment and Securities Act (ISA) 2025 introduced key provisions to regulate virtual assets in Nigeria.
Dr. Agama explained that all Virtual Asset Service Providers (VASPs) must obtain SEC approval and meet capital, governance, and cybersecurity standards.
He also noted that all platforms must warn investors about volatility, fraud, and regulatory risks, and that there are stiff penalties for market manipulation, insider trading, and Ponzi schemes.
The SEC DG urged all stakeholders to join forces in promoting transparency, accountability, and ethical practices. He emphasized that together, they can build resilient markets that drive Africa’s prosperity.
The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, described virtual asset fraud as a fast-evolving threat to national economic security, noting that it has the potential to outpace even money laundering on the continent.
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