Nigerian fintech companies have issued warnings to their customers against engaging in cryptocurrency or virtual currency trading on their platforms, threatening to block any accounts found involved in such activities.
Notably, Opay, Moniepoint, PalmPay, and Paga have communicated this stance to their customers.
This development follows the Central Bank of Nigeria’s directive last week, which halted major fintech firms like Kuda, Opay, PalmPay, and Moniepoint from onboarding new customers.
The CBN’s action was linked to an ongoing audit of the Know-Your-Customer process of these fintechs, amid concerns over money laundering and terrorism financing.
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In compliance with the CBN directive, OPay explicitly stated that it prohibits cryptocurrency and virtual currency trading on its platform.
It warned customers that engaging in such activities would result in the closure of their accounts, with customer information shared with regulatory authorities.
Similarly, Paga informed its customers via email to refrain from using their accounts for crypto and virtual currency transactions, stating that accounts violating this regulation would be blocked.
PalmPay echoed the sentiment, advising against using its platform for cryptocurrency or virtual assets transactions. Failure to comply may lead to the suspension of the account, it warned.
Tosin Eniolorunda, the founder and CEO of Moniepoint, called on cryptocurrency peer-to-peer (P2P) participants to cease their activities, citing the prohibition in the financial sector.
Regulatory scrutiny in the fintech industry has intensified, with key players summoned to Abuja for discussions on Know-Your-Customer protocols.
The Central Bank also cracked down on cryptocurrency exchange Binance in February, accusing it of manipulating the naira exchange rate.
The partnership between the CBN and the Office of the National Security Adviser (ONSA) aims to investigate and penalize individuals involved in illicit activities within the foreign exchange market.
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