NIGERIAN fintech firms have cautioned their clients against trading cryptocurrency or virtual currencies on their platforms, stating they will suspend any accounts discovered engaging in such transactions.
On Friday, May 3, 2024, at least four fintech companies, namely Opay, Moniepoint, PalmPay, and Paga, notified their customers about the development.
Recall, on Tuesday, April 30, 2024, the Central Bank of Nigerians (CBN) halted major fintech companies such as Kuda, Opay, PalmPay, and Moniepoint from onboarding new customers.
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The CBN’s action was associated with an ongoing audit of the Know-Your-Customer (KYC) process of these fintech firms, which have faced increased scrutiny in recent months due to worries regarding money laundering and the financing of terrorism.
The KYC or KYC check is the mandatory process of identifying and verifying the client’s identity when opening an account and periodically over time. In other words, banks must ensure that their clients are genuinely who they claim to be
OPay, in a notice issued on Friday, May 3, 2024, stated that it would implement rigorous measures against customers who breach its policy, in line with the Central Bank of Nigeria’s position on cryptocurrency trading.
“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.” The statement read in part.
Similarly PalmPay and Paga also warned their customers of the development in a statement.
“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.”
“We strongly advise against using your PalmPay account for transactions involving cryptocurrencies or any other virtual assets. Please be advised that failure to comply with these regulations may result in the suspension of your account.”
On Thursday, May 2, 2024 in Lagos, Tosin Eniolorunda, the founder and CEO of Moniepoint, advised participants in cryptocurrency peer-to-peer (P2P) transactions to stop their activities, citing the financial sector’s prohibition on such transactions
Fatimah Quadri is a Journalist and a Fact-checker at The ICIR. She has written news articles, fact-checks, explainers, and media literacy in an effort to combat information disorder.
She can be reached at sunmibola_q on X or fquadri@icirnigeria.org