Future of finance is digital but foundation must remain ethical, transparent – SEC DG

The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has disclosed that the future of finance is digital, but its foundation must remain ethical, transparent, and trustworthy.

The DG made the disclosure during his keynote address on Digital Assets and Virtual Assets Service Providers (VASPs) at the Journalist Academy programme in Abuja on Thursday.

He said, “Virtual assets hold immense potential to expand inclusion, mobilise investment, and position Nigeria as a continental leader in digital finance. But innovation must never outpace integrity.

“At the Securities and Exchange Commission, we remain steadfast in advancing a forward-looking, principles-based regulatory framework that balances innovation with investor protection. Together with our domestic and international partners, we are committed to building a digital asset ecosystem that is secure, transparent, and globally competitive. Because in this new frontier of finance, trust is the ultimate currency, and as regulators, our highest duty is to preserve it,” he added.

According to him, worldwide regulators are grappling with the same paradox: how to govern a borderless innovation within national frameworks. “Clamp down too hard, and innovation migrates offshore; regulate too softly, and systemic risks multiply,” he said.

He explained that the Financial Action Task Force (FATF), through Recommendation 15, now mandates VASPs to meet Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) standards.

“The Travel Rule requires the exchange of verified customer data for high-value transactions. In the European Union, the 5th Anti-Money Laundering Directive (5AMLD) and MiCA framework extend oversight to VASPs. And in the United States, enforcement against unregistered exchanges and fraudulent offerings has intensified.

“The global message is clear: digital finance demands the same transparency, accountability, and investor protection expected of traditional markets. Nigeria is not standing still,”he stated.

The DG revealed that in 2022, the Securities and Exchange Commission (SEC) issued Rules on the Issuance, Offering, and Custody of Digital Assets, defining virtual assets as securities and establishing a framework for Virtual Asset Service Providers.

He emphasised that beyond regulation, SEC Nigeria has adopted technological supervision. “Through partnerships with blockchain analytics firms, we now deploy advanced monitoring tools to trace transactions, detect fraud, and enhance cybersecurity capacity,” he said.

The SEC boss underscored the importance of blockchain analytics, artificial intelligence, and even quantum-resistant cryptography as opportunities to strengthen oversight and protect investors.

The Head of FinTech and Innovation Department at SEC, Mr. Abdulrasheed Dan-Abu, who presented his paper on Combating Investment Fraud (Ponzi Schemes and Illegal Investment Operations: Prohibitions and Penalties), called on investors to protect themselves by being sceptical when a client wants to sell them any investment with huge returns.

Mr. Abdulrasheed stressed that the commission is collaborating with other government agencies such as the CBN, EFCC, ICPC, and security agencies like the Police and DSS to track the activities of these illicit operators in the country.