Future of finance is digital but ethics must be the foundation - SEC DG
By Matthew Denis, Abuja
The Director General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has declared that while the future of finance is undeniably digital, its foundation must remain firmly rooted in ethics, transparency, and trustworthiness.
The DG made this assertion during his keynote address on Digital Assets and Virtual Assets Service Providers (VASPs) at a Journalist Academy programme in Abuja.
Agama stressed that virtual assets hold immense potential to expand financial inclusion, mobilize investment, and position Nigeria as a continental leader in digital finance.
However, he warned, "Innovation must never outpace integrity."
He affirmed that the SEC remains steadfast in its commitment to a forward-looking, principles-based regulatory framework that effectively balances innovation with robust investor protection.
In this new financial frontier, the DG stated, "Trust is the ultimate currency, and as regulators, our highest duty is to preserve it."
The SEC boss highlighted the global regulatory paradox: how to govern borderless digital innovation within national frameworks. He noted that clamping down too hard causes innovation to migrate offshore, while regulating too softly multiplies systemic risks.
He cited global measures driving accountability, including the Financial Action Task Force (FATF) Recommendation 15, which mandates VASPs to meet Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) standards. These include the implementation of the Travel Rule, which requires the exchange of verified customer data for high-value transactions.
Nigeria is actively responding to the global call for transparency. The DG reminded stakeholders that the SEC issued rules in 2022 on the Issuance, Offering, and Custody of Digital Assets, establishing a framework for VASPs.
To bolster enforcement, the SEC is collaborating closely with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to freeze illicit digital wallets and recover criminal proceeds.
Beyond mere regulation, the SEC has adopted technological supervision, partnering with blockchain analytics firms to deploy advanced monitoring tools for tracing transactions and detecting fraud.
Agama acknowledged remaining hurdles, including jurisdictional conflicts in cross-border cases, regulatory arbitrage, and capacity constraints.
He concluded, however, that these challenges are not insurmountable, citing Blockchain analytics, Artificial Intelligence, and quantum-resistant cryptography as powerful tools to strengthen oversight.
In a related presentation on combating fraud, Abdulrasheed Dan-Abu, Head of FinTech and Innovation at SEC, advised investors to protect themselves by remaining skeptical of huge return promises.
He urged the public to verify the registration status of any investment promoter with the SEC and report suspicious activity immediately. Dan-Abu stressed that the Commission’s joint efforts with the CBN, EFCC, ICPC, and security agencies are vital to tracking illicit operators.