The Securities and Exchange Commission has announced a partnership with the Central Bank of Nigeria and the Economic and Financial Crimes Commission to trace and freeze illicit digital wallets used for money laundering and other financial crimes.
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In a statement made available to our correspondent on Thursday, the Director-General of the SEC, Emomotimi Agama, disclosed this in Abuja while addressing participants at the Abuja Journalists Academy during a lecture titled “The Regulation of Digital Assets and Virtual Asset Service Providers in Nigeria.”
Represented by the Head of the External Relations Department of the Commission, Efe Ebelo, Agama described the partnership as a major step towards protecting investors and strengthening integrity in Nigeria’s fast-growing digital finance ecosystem.
“To strengthen enforcement, the SEC is working closely with the Central Bank of Nigeria and the Economic and Financial Crimes Commission to freeze illicit digital wallets and recover criminal proceeds. Our goal is to ensure that innovation serves progress, not predation,” he said.
Agama noted that Nigeria ranks among the world’s top adopters of digital assets, with more than one-third of its population involved in crypto-related activities. He said while this demonstrates the creativity of Nigerian youth and the drive for financial inclusion, it also presents opportunities for abuse.
He identified common threats such as crypto scams, fake wallet applications, phishing attacks, and ransomware schemes that have defrauded many unsuspecting citizens.
“Without strong regulation, innovation can quickly become vulnerability,” he cautioned. “Regulation is not about restriction; it is about building trust and ensuring that innovation strengthens our economy rather than weakens it.”
Agama explained that the SEC has established a detailed regulatory framework for Virtual Asset Service Providers under its 2022 Rules on the Issuance, Offering, and Custody of Digital Assets. The framework, he said, is built on three pillars, licensing, compliance, and transparency, to promote accountability and investor protection.
Beyond policy measures, the SEC boss revealed that the Commission is now leveraging blockchain analytics tools and artificial intelligence to trace transactions, detect fraud, and improve cybersecurity in the digital asset space.
“We are leveraging blockchain analytics, AI, and advanced monitoring systems to strengthen our supervisory capacity. This will help us respond faster to suspicious transactions and protect market integrity,” he added.
Agama said the collaboration with the CBN and EFCC would enhance coordination among regulators and law enforcement agencies, enabling swift action against cross-border financial crimes.
He further placed Nigeria’s regulatory efforts within a global context, noting that the Financial Action Task Force, through its Recommendation 15, requires all VASPs worldwide to implement anti-money laundering and counter-financing of terrorism controls.
“The message globally is clear: digital finance must be as transparent, accountable, and investor-friendly as traditional finance,” he said.
Agama reaffirmed the SEC’s commitment to balancing innovation with investor protection. “If regulators clamp down too hard, innovation migrates offshore; if they regulate too softly, risks multiply. Our task is to find the right balance,” he said.
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