In a bold move, several leading Nigerian fintech companies have issued stern warnings to their customers, prohibiting the trading of cryptocurrency or any virtual currency on their platforms. Opay, Moniepoint, PalmPay, and Paga, among others, have communicated this directive to their users, threatening to block any accounts found engaging in such activities.
This crackdown comes hot on the heels of the Central Bank of Nigeria’s recent directive to halt major fintech firms, including Kuda, Opay, PalmPay, and Moniepoint, from onboarding new customers. The CBN’s action is part of an ongoing audit of the Know-Your-Customer process of these fintechs, amidst mounting concerns over potential money laundering and terrorism financing.
Prior to the CBN’s intervention, the Economic and Financial Crimes Commission (EFCC) had secured a court order to freeze over 1,146 bank accounts linked to individuals and companies allegedly involved in illegal foreign exchange transactions.
In a firm notice issued to its customers, Opay emphasized strict adherence to the CBN’s stance on cryptocurrency trading, warning that any account found violating this policy will face closure, with customer information shared with regulatory authorities.
Similarly, Paga, a fintech firm with a significant transaction volume of $32 billion over 15 years, notified its account holders via email to abstain from using their accounts for crypto and virtual currency transactions, underlining the consequences of non-compliance, including account blockage.
Echoing this sentiment, PalmPay urged its users to refrain from cryptocurrency-related transactions, cautioning that failure to adhere to regulations could result in account suspension.
The founder and CEO of Moniepoint, Tosin Eniolorunda, echoed these sentiments during a recent event in Lagos, urging participants in cryptocurrency peer-to-peer (P2P) activities to cease their transactions in light of the financial sector’s prohibition.
With fintech giants taking decisive steps to align with regulatory directives, the landscape of virtual currency trading in Nigeria faces significant shifts, raising questions about the future of cryptocurrency within the nation’s financial ecosystem.