Several Nigerian fintech firms have alerted their customers to avoid using their platforms for cryptocurrency transactions.
Fintechs like Opay, Moniepoint, PalmPay, and Paga openly acknowledged that their accounts would be blocked in compliance with the guidance from the Central Bank of Nigeria (CBN) that any dealings with virtual currencies are not permitted.
This announcement comes shortly after the central bank earlier resolved that major fintech firms could not carry out new client registrations until they undergo a Know your Customer (KYC) audit. This includes more regulation and actions from authorities which are regarding complaints about money laundering and terrorism financing in the sector.
The fintechs separately admitted that they understood and were complying with CBN’s cryptocurrency trading regulation in their statements. Virtual currencies such as OPay and Paga have announced to customers that any individual investment could end their account leading to the report to regulatory bodies.
These actions align with the Central Bank of Nigeria’s efforts to stabilize the Nigerian currency and curb forex market abuses. Previously, this included freezing numerous bank accounts involved in unauthorized forex transactions. Recently, the CBN clarified that banks haven’t been instructed to discourage accounts related to crypto. This was found to be misinformation.
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