Nigerian Securities and Exchange Commission (SEC) teams up with Chainalysis to combat cryptocurrency fraud activities
In a bid to combat the escalating surge of scams and illicit activities in Nigeria's cryptocurrency ecosystem, the Securities and Exchange Commission (SEC) has taken decisive steps. The Security Editorial Team, responsible for addressing these issues, has responded to the current state of the crypto market with a series of measures.
One such measure is the collaboration with blockchain analytics firm Chainalysis. Together, they held a webinar titled "Combating Scams with Blockchain Intelligence," which focused on the importance of data sharing and advanced blockchain analytics in effectively tracking and disrupting fraudulent schemes.
The webinar highlighted the crucial role of enhanced regulatory oversight and financial intelligence in safeguarding the public from financial scams in the cryptocurrency market. Dr. Emomotimi Agama, SEC Director-General, emphasized the need for a joint effort between regulators and private companies in combating scams in the crypto ecosystem.
To further strengthen its monitoring capabilities, the SEC has established a comprehensive framework for digital assets, classifying cryptocurrencies as securities under the Investments and Securities Act (ISA) 2025. This framework includes strict anti-money laundering (AML) and know-your-customer (KYC) standards to ensure compliance and transparency.
Moreover, the SEC is operating a regulatory sandbox to test compliance with AML/KYC standards. This sandbox involves working with local crypto firms like Busha and Quidax to ensure they meet the regulatory requirements while fostering innovation in the sector.
These measures reflect the SEC's commitment to balancing innovation with financial stability while effectively combating crypto fraud. By leveraging blockchain analytics, the SEC can better monitor transactions and enforce regulations more efficiently, contributing to a safer and more trustworthy digital asset market in Nigeria.
[1] Nigerian SEC Classifies Cryptocurrencies as Securities, Enforces AML/KYC Standards: [Link to source] [2] Nigerian SEC Operates Regulatory Sandbox for Crypto Firms: [Link to source] [3] Nigerian SEC Partners with Chainalysis to Combat Crypto Scams: [Link to source]
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