SEC DG Says Trust is the Foundation of Digital Finance

By Oluwakemi Kindness

Director-General of the Securities and Exchange Commission (SEC) Nigeria, Emomotimi Agama, has reaffirmed that trust remains the ultimate currency in digital finance, underscoring the Commission’s commitment to balancing innovation with investor protection.

Delivering a keynote address at the 2025 Abuja Journalists Academy, Agama described digital asset regulation as one of the most transformative developments in modern finance.

“Regulation is not about restriction; it is about building trust and ensuring that innovation serves progress, not predation,” he stated.

Agama noted that Nigeria ranks among the world’s top adopters of digital assets, with over one-third of its citizens engaged in crypto-related activity.

He attributed this to the creativity of Nigerian youth, deep mobile connectivity, and the drive for inclusion.

However, he cautioned that rapid adoption has also created opportunities for exploitation through scams, phishing, fake wallet apps, and ransomware attacks.

“Without robust regulation, innovation can quickly become vulnerability,” he warned.

Agama revealed that the SEC has intensified efforts to enforce licensing requirements for all Virtual Asset Service Providers (VASPs) operating in Nigeria, in line with its 2022 Rules on the Issuance, Offering, and Custody of Digital Assets.

Under the framework, every crypto exchange, wallet service, and token issuer must register with the Commission and obtain formal approval before offering services to the public.

He said the Commission is working with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to identify and shut down unlicensed digital-asset platforms and freeze illicit wallets linked to criminal proceeds.

“The era of unregulated crypto operations is over. Our focus is on protecting investors, promoting transparency, and ensuring that innovation occurs within the law,” Agama stated.

To enhance surveillance, the SEC has partnered with blockchain analytics companies to monitor transaction flows, detect fraud, and trace suspicious assets across jurisdictions in real time.

“This technology-driven supervision gives us the capacity to see through digital transactions and act swiftly against bad actors,” he added.

Highlighting Nigeria’s proactive approach, Agama explained that the SEC’s regulatory model is now guided by data-driven supervision and cross-agency collaboration.

By leveraging artificial intelligence and blockchain analytics, the Commission aims to improve compliance oversight and strengthen the nation’s resilience against cyber and financial crimes.

“With collaboration and technological sophistication, we can stay ahead of evolving risks,” he emphasized.

He cited examples of global initiatives, including:

The European Union’s MiCA framework and 5th Anti-Money Laundering Directive (5AMLD);

The Financial Action Task Force (FATF) standards; and

The United States’ enforcement actions against unregistered exchanges and fraudulent offerings.

“Clamp down too hard, and innovation migrates offshore; regulate too softly, and risks multiply,” he observed.

The SEC DG acknowledged persistent hurdles such as jurisdictional conflicts, regulatory arbitrage, inconsistent asset definitions, and capacity constraints.

He, however, expressed optimism that emerging technologies—including artificial intelligence, blockchain analytics, and quantum-resistant cryptography—will strengthen global oversight and investor protection mechanisms.

Concluding his address, Agama reaffirmed that while the future of finance is digital, its foundation must remain ethical and transparent.

“Virtual assets hold immense potential to expand inclusion, mobilize investment, and position Nigeria as a continental leader in digital finance,” he said.

“But innovation must never outpace integrity.”

He pledged that the SEC will continue advancing a principles-based regulatory framework that supports innovation while safeguarding investors.

“Together with our partners, we are building a digital asset ecosystem that is secure, transparent, and globally competitive. In this new frontier of finance, trust is the ultimate currency,” he concluded.