Several Nigerian fintech companies have advised their consumers to avoid using their platforms for cryptocurrencycurrency transactions.
Fintechs such as Opay, Moniepoint, PalmPay, and Paga openly stated that their accounts would be blocked in accordance with the Central Bank of Nigeria’s (CBN) guideline that any transactions using virtual currencies are prohibited.
In separate statements, the fintechs confirmed that they understood and were following the CBN’s bitcoin trading law. Virtual currencies such as OPay and Paga have informed clients that every individual investment may result in the closure of their account, prompting a referral to regulatory organizations.
This announcement came shortly after the central bank decided that big fintech firms may not accept new client registrations until they completed a Know Your Customer (KYC) audit. This includes additional regulation and actions taken by authorities in response to allegations about money laundering and terrorism financing in the sector.
These moves are consistent with the Central Bank of Nigeria’s attempts to stabilize the Nigerian naira and prevent forex market abuses. Previously, this included suspending multiple bank accounts linked to illicit FX operations. The CBN recently emphasized that banks have not been ordered to restrict cryptocurrencycurrency-related accounts. This turned out to be incorrect information.
Read also:
