Nigerian fintech companies have issued stern warnings to their customers, advising against engaging in cryptocurrency trading or any transactions involving virtual currencies through their platforms. These companies, including Opay, Moniepoint, PalmPay, and Paga, have alerted their users to the consequences of violating this directive, stating that accounts found trading in cryptocurrencies will be blocked.
This announcement follows the recent action by the Central Bank of Nigeria (CBN) to halt the onboarding of new customers by major fintech firms such as Kuda, Opay, PalmPay, and Moniepoint. The CBN’s decision is reportedly part of an ongoing audit of the Know-Your-Customer (KYC) process within these fintechs, which have faced scrutiny over concerns related to money laundering and terrorism financing.
Prior to the CBN’s directive, the Economic and Financial Crimes Commission (EFCC) secured a court order to freeze over 1,146 bank accounts linked to individuals and companies allegedly involved in illegal foreign exchange transactions.
Opay, in its notice to customers, emphasized its alignment with the CBN’s stance on cryptocurrency trading and warned of strict measures against violators. Paga, another fintech giant, echoed similar sentiments, cautioning its account holders against using their accounts for crypto-related transactions under the threat of being blocked.
Similarly, PalmPay issued a strong advisory against using its platform for cryptocurrency transactions and warned of potential account suspension for non-compliance with regulations.
Tosin Eniolorunda, the founder and CEO of Moniepoint, further emphasized the prohibition on cryptocurrency peer-to-peer (P2P) transactions within the financial sector during an event in Lagos. He urged participants in such activities to cease their operations in light of regulatory constraints.
