Nigerian Fintech Firms Issue Crypto Trading Warnings, Threaten To Block Accounts
Written by Jerry Alomatu on May 4, 2024
Fintech firms in Nigeria have recently issued stern warnings to their clientele, advising against involvement in cryptocurrency or virtual currency trading through their platforms. They have declared their intention to take strict measures, including the potential blocking of accounts found engaging in such activities.
Opay, Moniepoint, PalmPay, and Paga, among others, have communicated this stance to their customers, with notifications sent out on Friday.
Preceding this, the Central Bank of Nigeria (CBN) had directed major fintech firms such as Kuda, Opay, PalmPay, and Moniepoint to halt the onboarding of new customers. This directive was linked to an ongoing audit of the Know-Your-Customer processes of these fintech firms, amid concerns over money laundering and terrorism financing.
Prior to the CBN’s directive, the Economic and Financial Crimes Commission (EFCC) had secured a court order to freeze around 1,146 bank accounts linked to individuals and companies allegedly involved in illegal foreign exchange transactions.
In a notice issued on Friday, Opay reiterated its compliance with the CBN directive, prohibiting cryptocurrency and virtual currency trading. Violating accounts face closure, with customer information shared with regulatory authorities.
Likewise, Paga cautioned its customers against utilizing their accounts for crypto and virtual currency transactions, warning of potential account blocks for non-compliance.
PalmPay also released a statement advising against using its platform for cryptocurrency transactions, threatening account suspension for non-compliance with regulations.
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Author: Jerry Alomatu
Astute communicator
