On Friday, several prominent Nigerian fintech companies, including Opay, Moniepoint, PalmPay, and Paga, issued strong warnings and caution against crypto-trading on their respective platforms. They made it clear that engaging in such activities could result in the suspension of user accounts. This move reflects the growing concerns within the Nigerian fintech industry regarding the potential risks associated with cryptocurrency transactions.
The Central Bank of Nigeria recently instructed major fintech firms like Kuda, Opay, PalmPay, and Moniepoint to cease onboarding new customers. This action is part of a broader review of these fintech companies’ Know-Your-Customer processes. Concerns about potential involvement in money laundering and terrorism financing prompted this scrutiny.
Before the CBN’s directive, the Economic and Financial Crimes Commission froze approximately 1,146 bank accounts linked to individuals and companies allegedly conducting illegal foreign exchange transactions.
OPay, in a notice released on Friday, emphasized its alignment with the CBN’s stance on cryptocurrency trading. It warned of stringent actions against accounts violating this policy, including shutdowns and sharing customer details with regulatory authorities.
Similarly, Paga, with a transaction record of $32 billion over 15 years, cautioned its customers against crypto and virtual currency transactions. Accounts found violating this regulation face the risk of being blocked.
PalmPay, another significant player in the fintech sector, advised against using its platform for cryptocurrency transactions. It warned of potential account suspension for non-compliance.
Moreover, Moniepoint’s CEO, Tosin Eniolorunda, urged participants in cryptocurrency peer-to-peer transactions to halt their activities. This comes amidst the sector-wide prohibition on such transactions, as highlighted during an event in Lagos.
Follow us on Socials: