Concerns are mounting across West Africa as regulators struggle to keep pace with the rapid spread of cryptocurrency—and its misuse. Speaking at the West Africa Compliance Summit in Praia, Cape Verde, Nigeria’s Securities and Exchange Commission (SEC) chief, Emomotimi Agama, revealed that $2.1 billion worth of suspicious crypto-related activity occurred across the region in 2024.

According to Agama, the figures were flagged by the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA). He explained that the rise of virtual assets has not only enabled innovation but also exposed gaps exploited by malicious actors.

DeFi ‘rug pulls’ continue to defraud unsuspecting users. GIABA reported $2.1bn in suspicious crypto-linked transactions in West Africa in 2024, with terror groups exploiting privacy coins to evade detection,” Agama said.

DeFi Scams and Unlicensed Exchanges Under Scrutiny

While the benefits of blockchain innovation are clear, so are the dangers. The SEC boss noted that the region has witnessed a spike in cases of artificial crashes, unregistered exchanges disappearing with investor funds, and DeFi scams such as rug pulls. These have left many retail investors in ruins.

In response, Nigeria’s SEC is stepping up surveillance and regulatory enforcement. Agama stressed that regulation is no longer optional, especially as the crypto market matures in Africa. The need for coordinated action is becoming more urgent, particularly as fraudsters move operations across borders with ease.

“A trader banned in Nigeria simply relocates to Ghana. ECOWAS must adopt a Unified VASP Licensing System,” Agama urged.

His remarks highlight the lack of consistency in regulatory frameworks among West African nations, which has created an easy escape route for bad actors operating in digital asset markets.

I am passionate about crafting stories, vibing to good music (and making some too), debating Nigeria’s political future like it’s the World Cup, and finding the perfect quiet spot to work and unwind.

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