Nigerian Securities Commission Plans to Utilize Blockchain Analysis for Combating Cryptocurrency Fraud

Nigeria's SEC Collaborates with Chainalysis to Combat Crypto Fraud

The Nigeria Securities and Exchange Commission (SEC Nigeria) has taken a significant step towards ensuring the safety and transparency of cryptocurrency transactions within the country. In a collaborative effort with global analytics firm, Chainalysis, SEC Nigeria hosted a webinar titled "Combating Scams with Blockchain Intelligence."

Dr. Emomotimi Agama, Director-General of SEC Nigeria, emphasized the importance of transparency in cryptocurrency oversight. He called for unified action among regulators, industry players, and technology providers to proactively tackle crypto fraud. Agama highlighted the need for a data-driven enforcement strategy to combat fraudulent practices in the digital markets of Nigeria.

To achieve this, Agama suggested mandatory reporting of suspicious transactions for crypto service providers and exchanges. He also recommended the integration of blockchain analytics into routine operations to monitor transactions more effectively. Agama did not mention any specific platforms for further insights or updates.

The SEC Nigeria is committed to using blockchain intelligence to combat cryptocurrency-related fraud. This commitment is reinforced by the Investment and Securities Act (ISA) 2025, which came into effect in April 2025, providing clarity for digital asset operations and reinforcing regulatory authority over the crypto ecosystem.

Chainalysis, the global analytics firm working with SEC Nigeria, recently released the 2025 Crypto Crime Report. The report showed that illicit crypto addresses received $178 billion over the past five years, with 2024 alone seeing $40.9 billion in illicit funds. Stablecoins accounted for 63% of these volumes.

SEC Nigeria is not only collaborating with Chainalysis but also with other entities, such as the Kenya School of Government and the Nigerian Exchange, Busha, for crypto-related initiatives. The commission is also reportedly launching a crypto course with the Kenya School of Government and Busha to educate the public and industry players about digital assets.

Agama emphasized the need for collective action to make sure they stop crypto fraud "right at the beginning." The clear regulatory stance provides stronger protection, reduces exposure to scams, and increases investor confidence in the Nigeria digital asset market. However, no new data was presented about the amounts or percentages of illicit crypto transactions, stablecoins, or the impact of the regulatory stance on investor confidence in the Nigeria digital asset market.

Nigerian Securities Commission Plans to Utilize Blockchain Analysis for Combating Cryptocurrency Fraud