Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has expressed concern over the growing threat of virtual asset fraud, warning that it poses a significant risk to market integrity and investor confidence.
Agama spoke on Wednesday in Abuja at an event marking the African Union anti-corruption day, themed ‘Understanding Virtual Assets and Investment Fraud’.
He said corruption remains a significant barrier to Africa’s economic progress, social advancement, and appeal to investors.
“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,” the SEC DG said.
“These threats undermine market integrity, erode trust, and divert resources meant for sustainable development.”
Agama said the SEC, as the lead regulatory authority, is committed to boosting investor awareness on how to identify and avoid fraudulent investment schemes.
He said the commission is also working to enhance regulatory frameworks in response to emerging risks in virtual assets and digital investments, while promoting international cooperation to tackle corruption and illicit financial flows.
The director-general said the Investment and Securities Act (ISA) of 2025 contains key provisions for regulating virtual assets — including cryptocurrencies, digital tokens, and other blockchain-based instruments.
He said the law also designates the SEC as the primary regulator for any such assets classified as securities or investment products.
According to the SEC boss, all virtual asset service providers (VASPs) — including exchanges, brokers, and custodians — are required to secure approval from the commission and meet capital, governance, and cybersecurity standards.
On risk disclosures, he said all platforms must warn investors about volatility, fraud, and regulatory risks, stressing that there are stiff 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.
“We urge all stakeholders—governments, private sector players, civil society, and citizens—to join forces in promoting transparency, accountability, and ethical practices. Together, we can build resilient markets that drive Africa’s prosperity.”
In his remarks, Ola Olukoyede, chairman of the Economic and Financial Crimes Commission (EFCC), described virtual asset fraud as a fast-evolving threat to national economic security.
He said virtual asset and investment scams are an emerging criminal trend that could potentially surpass money laundering across the continent.