Nigerian fintech companies are taking a stand against cryptocurrency trading, aligning with directives from the Central Bank of Nigeria (CBN). Amid concerns over money laundering and terrorism financing, firms like Opay, Moniepoint, PalmPay, and Paga have issued warnings to their customers, threatening to block accounts engaged in cryptocurrency transactions through their platforms.
The CBN's recent move to halt onboarding new customers by major fintech firms was linked to an ongoing audit of their Know-Your-Customer processes. Additionally, the Economic and Financial Crimes Commission (EFCC) obtained a court order to freeze over 1,100 bank accounts allegedly involved in illegal foreign exchange transactions, further amplifying regulatory scrutiny.
Opay, in a notice to its customers, emphasized its adherence to the CBN's directive and stated that accounts found trading in cryptocurrencies would be closed, with customer information shared with regulatory authorities. Similarly, Paga, with a transaction history totaling $32 billion over 15 years, notified its account holders to refrain from using their accounts for crypto transactions, warning of potential blocks for violations.
PalmPay echoed the sentiment, advising against cryptocurrency transactions on its platform and warning of account suspension for non-compliance. Moniepoint's CEO, Tosin Eniolorunda, urged cryptocurrency peer-to-peer participants to cease activities, underscoring the financial sector's prohibition on such transactions, The PUNCH reports.