A staggering $2.1 billion in suspicious cryptocurrency transactions occurred across West Africa in 2024 alone, according to a report from the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). This revelation was made public by Dr. Emomotimi Agama, Director-General of Nigeria’s Securities and Exchange Commission (SEC), during his address at the recently concluded West Africa Compliance Summit in Praia, Cape Verde.
Dr. Agama raised serious concerns about the rising misuse of digital assets by criminal entities and terrorist organizations, which continue to exploit weak regulatory frameworks across the region. He stressed that although crypto adoption is growing rapidly in Africa, the momentum is being undercut by a wave of criminality that takes advantage of fragmented oversight and poor compliance standards.
“DeFi ‘rug pulls’ continue to defraud unsuspecting users. GIABA reported $2.1 billion in suspicious crypto-linked transactions in West Africa in 2024, with terror groups exploiting privacy coins to evade detection,” Agama stated.
The Dark Side of Crypto Growth: Scams, Unregistered Exchanges, and Investor Losses
Referencing findings from both GIABA and the Nigerian SEC, Agama described a worrying trend of fake token crashes, unlicensed exchanges, and Ponzi-like schemes that have cost African investors billions of dollars. He cited the infamous CBEX crypto fraud case, which swindled Nigerians out of vast sums, as a prime example of the consequences of inadequate oversight.
“Without proper compliance mechanisms, bad actors simply move from one jurisdiction to another,” Agama noted. “A trader banned in Nigeria simply relocates to Ghana. This highlights the urgent need for regional regulatory harmonization.”
SEC Pushes for Unified Licensing and Regional Collaboration
To combat the rising tide of crypto-related fraud, Dr. Agama revealed that the SEC is implementing a multi-pronged strategy. This includes intensified market surveillance, increased collaboration with sister regulatory agencies across ECOWAS, and public education campaigns.
Key among his proposals is the creation of a Unified VASP (Virtual Asset Service Provider) Licensing System across West African countries, which would prevent fraudsters from jurisdiction-hopping and create a more secure investment environment for the region’s fast-growing crypto user base.
“We must harmonise our regulatory frameworks, share intelligence, and adopt best practices to close loopholes exploited by bad actors,” Agama emphasized.
Awareness Campaigns Take Center Stage
As part of its consumer protection mandate, the SEC has launched nationwide awareness programs in Nigeria’s major cities, including Lagos and Abuja, aimed at educating the public on the dangers of crypto scams and how to verify legitimate digital asset platforms.
Agama reiterated the Commission’s commitment to fostering innovation in blockchain and virtual assets while ensuring that security, compliance, and investor protection remain at the forefront.
Why This Matters
As West Africa emerges as a major hub for digital asset activity, the need for coordinated oversight and unified compliance standards is more urgent than ever. With billions in suspicious transactions flagged and investors increasingly vulnerable, the region stands at a critical juncture.
The future of crypto in Africa depends not just on adoption, but on trust, transparency, and robust regulation.
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