Nigerian fintech firms are defying the Central Bank of Nigeria’s (CBN) directives by refusing to deal in cryptocurrencies. Companies such as Opay, Moniepoint, PalmPay, and Paga have threatened to restrict client accounts that deal with cryptocurrencies through their systems, raising worries about money laundering and financing of terrorism.CONTINUE FULL READING>>>>
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.CONTINUE FULL READING>>>>
