{"id":123425,"date":"2025-10-30T19:19:09","date_gmt":"2025-10-30T18:19:09","guid":{"rendered":"https:\/\/pointblanknews.com\/pbn\/?p=123425"},"modified":"2025-10-30T19:19:09","modified_gmt":"2025-10-30T18:19:09","slug":"digital-assets-structural-pillars-of-modern-finance-sec","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/digital-assets-structural-pillars-of-modern-finance-sec\/","title":{"rendered":"\u200eDigital Assets, Structural Pillars of Modern Finance \u2014 SEC"},"content":{"rendered":"
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\u200eDaniel Adaji<\/div>\n
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\u200eThe Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has described digital assets as \u201ca structural pillar of modern finance\u201d.<\/div>\n
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\u200eHe emphasised that they have moved beyond experimentation to become a defining feature of today\u2019s global financial system.<\/div>\n
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\u200eSpeaking at the Abuja Journalists Academy on Thursday, Agama said the digital revolution has fundamentally transformed how people communicate, transact, and create value, reshaping the architecture of finance itself.<\/div>\n
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\u200e\u201cOver the past half-century, the digital revolution has redefined how we communicate, transact, and create value. From the internet of the 1990s to today\u2019s blockchain-based economies, the digital age has not merely changed the medium of finance, it has reinvented its very architecture,\u201d he stated.<\/div>\n
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\u200eHe explained that digital assets now encompass a broad ecosystem beyond cryptocurrencies and non-fungible tokens (NFTs).<\/div>\n
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\u200e\u201cThey represent an expanding ecosystem that includes cryptocurrencies such as Bitcoin and Ethereum, tokenized real-world assets, decentralized finance (DeFi), and central bank digital currencies (CBDCs),\u201d he said.<\/div>\n
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\u200eAccording to him, these innovations are transforming finance across four dimensions \u2014 infrastructure, asset classes, intermediation, and access\u00a0 adding that \u201cthe data speaks for itself- digital assets are no longer a fringe experiment; they are a structural pillar of modern finance.\u201d<\/div>\n
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\u200eAgama noted that Nigeria remains at the forefront of digital finance evolution, ranking among the world\u2019s top adopters of digital assets.<\/div>\n
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\u200e\u201cWe are among the world\u2019s top adopters of digital assets, with more than one-third of our population participating in crypto-related activity. This reflects the creativity of our young people, our deep mobile connectivity, and the hunger for inclusion,\u201d he said.<\/div>\n
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\u200eHowever, the SEC DG warned that the rapid adoption of digital assets has also created opportunities for exploitation, citing the rise in scams, phishing attacks, fake wallet applications, and ransomware schemes targeting unsuspecting Nigerians.<\/div>\n
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\u200e\u201cThese threats underscore an urgent truth: without robust regulation, innovation can quickly become vulnerability,\u201d he stated.<\/div>\n
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\u200eAgama stressed that regulation is not meant to stifle innovation but to build trust and protect investors. \u201cRegulation is not about restriction; it is about building trust ensuring that innovation serves progress, not predation,\u201d he stated.<\/div>\n
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\u200eHighlighting global trends, he referenced the Financial Action Task Force (FATF) Recommendation 15, the European Union\u2019s MiCA framework, and U.S. enforcement measures, noting that these initiatives demonstrate a worldwide commitment to transparency and accountability in digital finance.<\/div>\n
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\u200e\u201cThe global message is clear: digital finance demands the same transparency, accountability, and investor protection expected of traditional markets,\u201d he said.<\/div>\n
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\u200eHe recalled that in 2022, the SEC issued Rules on the Issuance, Offering, and Custody of Digital Assets to regulate virtual asset service providers (VASPs) in Nigeria. \u201cThese rules rest on three pillars: licensing, compliance, and transparency,\u201d he said.<\/div>\n
\u200eUnder the framework, all VASPs operating in Nigeria are required to register and obtain SEC approval, meet anti-money laundering and counter-terrorism financing obligations, and maintain real-time transaction monitoring systems.<\/div>\n
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\u200eTo enhance enforcement, the Commission collaborates with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to freeze illicit digital wallets and recover criminal proceeds.<\/div>\n
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\u200eAgama added that SEC has embraced technological supervision through partnerships with blockchain analytics firms to trace transactions, detect fraud, and strengthen cybersecurity.<\/div>\n
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\u200eHe acknowledged that regulatory challenges persist, including jurisdictional conflicts, regulatory arbitrage, and capacity constraints. Nonetheless, he expressed optimism that these hurdles can be overcome with collaboration and technology.<\/div>\n
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\u200e\u201cWith collaboration and technological sophistication, we can stay ahead of evolving risks,\u201d he said, pointing to blockchain analytics, artificial intelligence, and quantum-resistant cryptography as tools to strengthen oversight.<\/div>\n
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\u200eThe SEC boss reaffirmed SEC\u2019s commitment to developing a balanced regulatory environment that fosters innovation while safeguarding market integrity.<\/div>\n
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\u200e\u201cVirtual assets hold immense potential to expand inclusion, mobilize investment, and position Nigeria as a continental leader in digital finance. But innovation must never outpace integrity,\u201d he said.<\/div>\n
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\u200e\u201cAt the Securities and Exchange Commission, we remain steadfast in advancing a forward-looking, principles-based regulatory framework that balances innovation with investor protection. Because in this new frontier of finance, trust is the ultimate currency and as regulators, our highest duty is to preserve it,\u201d he said.<\/div>\n
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