NIGERIAN fintech companies have advised their users against using their apps to trade bitcoin or any other virtual money, threatening to block any accounts found to be doing so.
At least four fintechs; Opay, Moniepoint, PalmPay, and Paga, yesterday informed their clients of this change.
The Central Bank of Nigeria, last Monday, prohibited key fintech companies such as Kuda, Opay, PalmPay, and Moniepoint from acquiring new customers.
The CBN’s decision was tied to an ongoing assessment of fintechs’ Know-Your-Customer processes, which have been under scrutiny in recent months due to worries about money laundering and terrorism financing.
Prior to the CBN’s directive, the Economic and Financial Crimes Commission (EFCC) got a court order freezing at least 1,146 bank accounts belonging to various persons and firms accused of engaging in unlawful foreign exchange transactions.
In a notification released yesterday, OPay stated that it will take strong penalties against customers who breach its rules, which is consistent with the Central Bank of Nigeria’s stance on cryptocurrency trading.
CP Abayomi went on to describe another murder case involving Dolapo Babalola, a serial murderer who specializes in robbing and killing motorcyclists.
“In compliance with the CBN directive, please note that OPay prohibits any cryptocurrency and all virtual currency trading. Any account engaging in such activities will be closed, and customer information will be shared with regulatory authorities.
“Please ensure that your account does not involve any cryptocurrency or any other virtual currency transaction,” the fintech firm warned.
In a similar move, Paga, a fintech firm that has processed transactions worth $32bn in 15 years of operation, said in an email to its customers, “As a Paga account holder, please ensure that your account is not used for crypto and virtual currency transactions. Paga accounts in violation of this regulation will be blocked.”
PalmPay, another significant player, stated in an emailed statement that “we strongly advise against using your PalmPay account for transactions involving cryptocurrencies or any other virtual assets.” Please be aware that failure to follow these regulations may result in the suspension of your account.
The founder and CEO of Moniepoint, Tosin Eniolorunda, on Thursday in Lagos, urged cryptocurrency peer-to-peer (P2P) players to suspend their activities, citing the financial sector’s prohibition on such transactions.