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Daniel Adaji
The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has stated that digital asset fraud threatens market integrity and investor confidence.
Speaking recently in Abuja at an event to mark the African Union Anti-Corruption Day, themed “Understanding Virtual Assets and Investment Fraud”, Agama said the rise of sophisticated scams exploiting virtual assets is undermining trust in financial systems and stalling Africa’s development.
In a statement on Thursday Agama said, “Today, as digital innovation transforms financial systems, we face new challenges, particularly the rise of virtual asset fraud and sophisticated investment scams exploiting unsuspecting investors.”
”These threats undermine market integrity, erode trust, and divert resources meant for sustainable development,” he added.
He said corruption remains a significant barrier to the continent’s economic growth, social progress, and investor confidence, stressing the need for collective action.
Agama outlined the SEC’s ongoing efforts to address these risks, noting that the Commission is “strengthening investor education on recognising and avoiding fraudulent schemes; enhancing regulatory frameworks to keep pace with evolving risks in virtual assets and digital investments; and fostering cross-border collaboration to combat corruption and illicit financial flows.”
He stated that the new Investment and Securities Act (ISA) 2025 provides a legal foundation for regulating cryptocurrencies, digital tokens, and other blockchain-based assets. The law designates the SEC as the principal regulator for virtual assets considered securities or investment products.
According to him, “all Virtual Asset Service Providers (VASPs) exchanges, custodians, brokers, must obtain SEC approval and meet capital, governance, and cybersecurity standards.”
Agama also stressed the importance of risk disclosures, warning that all platforms must inform investors about volatility, fraud, and regulatory dangers. He added that there are strict penalties for market manipulation, insider trading, and Ponzi schemes.
“The ISA 2025 provides a comprehensive legal framework for virtual asset regulation, balancing innovation, investor protection, and financial stability. The SEC will continue to issue guidelines to ensure compliance while fostering a secure digital asset ecosystem,” he said.
He called on all stakeholders including governments, businesses, civil society, and citizens to promote transparency, accountability, and ethical practices. “Together, we can build resilient markets that drive Africa’s prosperity,” he said.
Also speaking at the event, the Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, described virtual asset fraud as a fast-growing threat to national economic stability.
“Another rising criminal engagement that has a potential to outpace, even money laundering, on the continent is virtual assets and investment scam,” Olukoyede said.