Nigeria’s Securities and Exchange Commission (SEC) has intensified its call for tighter regulatory coordination across West Africa following alarming revelations about cryptocurrency-linked fraud in the region.
According to a recent report by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), suspicious transactions involving virtual assets in 2024 exceeded $2.1 billion, making the region a significant hotspot for illicit crypto activities. The disclosure underscores the vulnerabilities in a rapidly expanding sector that has attracted millions of users but remains largely fragmented regarding oversight.
This concern was a key topic at the West Africa Compliance Summit, held in Praia, Cape Verde, under the theme “Adapting and Thriving in a Complex and Evolving Compliance Landscape.” The event, convened by GIABA, brought together financial regulators, law enforcement agencies, and compliance experts to discuss the growing risks in virtual asset markets and strategies for harmonised regulation across ECOWAS.
At the heart of the discussion was a call by SEC Director-General Dr. Emomotimi Agama for a unified licensing framework for Virtual Asset Service Providers (VASPs) across the ECOWAS region. Such a system, he noted, would help prevent regulatory arbitrage, where operators exploit gaps between national laws, and strengthen investor protection.
The issue goes beyond financial fraud; authorities warn that unchecked crypto activity could enable money laundering and terrorism financing. With Nigeria being one of Africa’s largest crypto markets, the SEC believes harmonised policies are essential to safeguard users and maintain market integrity.
As regulators deliberate on a continent-wide approach, the push for clarity signals a new phase for Africa’s digital asset ecosystem, where innovation must coexist with robust compliance measures. Industry players, meanwhile, are watching closely, knowing that decisions made today could define the trajectory of crypto adoption in the region.
