The Director-General of the Securities and Exchange Commission, Emomotimi Agama, has raised concern over the growing number of suspicious cryptocurrency transactions in West Africa, revealing that GIABA reported $2.1bn in such transactions across the region in 2024.

Speaking at the West Africa Compliance Summit organised by GIABA in Praia, Cape Verde recently, Agama noted that while virtual asset adoption is expanding rapidly, it has also attracted malicious actors.

He said, “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 him, artificial crashes, unregistered exchanges absconding with funds, and inadequate oversight have resulted in significant losses for investors.

“Regulation, therefore, is not optional but an imperative,” he added.

Agama stated that the SEC was intensifying efforts to monitor activities in the digital asset space, stressing the need for regional cooperation to close loopholes exploited by criminals.

He said, “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 further noted that Nigeria plans to deploy AI surveillance tools for blockchain analytics to trace illicit activity while ensuring consumer protection.

Agama also disclosed that the SEC has launched a Ponzi awareness campaign, following the collapse of the CBEX scheme, which defrauded many investors. The campaign has already been conducted across key locations in Abuja and Lagos, with plans to extend to other states.