In response to directives from the Central Bank of Nigeria (CBN), several prominent Nigerian fintech firms, including Opay, Moniepoint, PalmPay, and Paga, have issued warnings to their customers regarding cryptocurrency trading on their platforms.
These announcements come amidst a broader regulatory crackdown on the fintech sector in Nigeria.
Last week, the CBN mandated major fintech companies such as Kuda, Opay, PalmPay, and Moniepoint to cease onboarding new customers as part of an ongoing audit of their Know-Your-Customer (KYC) processes. This move follows heightened concerns over money laundering and terrorism financing within the fintech space.
Prior to the CBN’s intervention, the Economic and Financial Crimes Commission (EFCC) obtained a court order to freeze over 1,100 bank accounts allegedly linked to illegal foreign exchange transactions.
In alignment with the CBN’s stance on cryptocurrency trading, Opay, one of Nigeria’s leading fintech platforms, issued a stern notice to its customers, stating that accounts found engaging in cryptocurrency activities would be closed, with customer information shared with regulatory authorities.
Similarly, Paga, a prominent fintech firm with a transactional volume of $32 billion over 15 years, warned its account holders against using their platform for crypto and virtual currency transactions, threatening account blocks for violations.
Echoing these sentiments, PalmPay advised against cryptocurrency transactions, cautioning users that failure to comply could result in account suspension.
In a separate development, Tosin Eniolorunda, the CEO of Moniepoint, urged participants in cryptocurrency peer-to-peer (P2P) transactions to cease their activities, underscoring the financial sector’s prohibition on such dealings.
These actions signal a tightening regulatory environment for cryptocurrency trading in Nigeria and reflect efforts by authorities and fintech companies to ensure compliance with established regulations and combat illicit financial activities.
