The news:
- Moniepoint and Paga have notified customers that their accounts will be blocked if they facilitate crypto transactions with it.
- This is coming after CBN ordered some new banks including Moniepoint to stop onboarding new customers.
- This notification signifies a complete turnaround of the announcement by the Central Bank of Nigeria to lift the crypto ban instated in 2021.
In the notification sent to customers today, May 2, 2024, Moniepoint said "In line with CBN regulation we will close the account of anyone engaging or other virtual assets transactions and share their details with relevant authorities.
Paga also sent an email to customers saying that it is licensed by the CBN and needs to comply with all CBN regulations.
"Pursuant to the CBN circular with reference FPR/DIR/GEN/CIR/06/10, we wish to remind you that dealing in or facilitating transactions in cryptocurrency and other virtual currencies is not permitted."
The circular referenced by Paga is from 2017 and it warns banks and other financial institutions in their relations with crypto exchanges and customers that transact cryptocurrency.
However, in a new CBN circular issued in December 2023, the apex bank said financial institutions should open accounts, provide designated settlement accounts and settlement services and act as channels for forex inflows and trade for firms transacting in crypto assets.
It also said that the new circular of 2023 supersedes the one from 2017 and the circular from 2021 that restricted banks and other financial institutions from operating accounts for cryptocurrency service providers.
Therefore, this announcement by Moniepoint and Paga could mean the CBN might reinstate the crypto ban from 2021.
Interestingly, Moniepoint is one of the financial institutions that was directed by the CBN to restrict new account openings.
Be the smartest in the room
Join 30,000 subscribers who receive Techpoint Digest, a fun week-daily 5-minute roundup of happenings in African and global tech, directly in your inbox, hours before everyone else.
These directives point to a fight against illegal FX transactions in Nigeria, however, they could push crypto usage beyond the purview of the government, worsening the grip on the use of digital assets.