Regulation
Don’t trade crypto, Opay, PalmPay, others warn customers
Nigerian fintech companies have warned their customers against trading cryptocurrencies or any virtual currencies on their apps, threatening to block any account engaging in such activities.
At least four fintechs – Opay, Moniepoint, PalmPay and Paga – communicated this development to their customers on Friday.
Last week, the Central Bank of Nigeria blocked major fintech companies like Kuda, Opay, PalmPay and Moniepoint from onboarding new customers.
The CBN’s decision was linked to an ongoing audit of fintechs’ know-your-customer process, which has come under scrutiny in recent months amid concerns over money laundering and terrorist financing .
Prior to the CBN directive, the Economic and Financial Crimes Commission had obtained a court order to freeze at least 1,146 bank accounts belonging to various individuals and companies allegedly involved in illegal foreign exchange transactions.
In a notice published on Friday, OPay said it would take strict action against customers who violate its policies, which is in line with the Central Bank of Nigeria’s stance on cryptocurrency trading.
“In accordance with the CBN directive, please note that OPay prohibits all cryptocurrency and 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 other virtual currency transactions,” the fintech company warned.
Along the same lines, Paga, a fintech company that has processed $32 billion worth of transactions in 15 years of business, said in an email to clients: “As a registrant of a Paga account, please ensure that your account is not used for crypto and virtual. foreign currency transactions. Paga accounts in violation of this regulation will be blocked.
PalmPay, another major player in an emailed statement, said: “We strongly advise against using your PalmPay account for transactions involving cryptocurrencies or any other virtual assets. Please note that failure to comply with these regulations may result in your account being suspended.
In Lagos on Thursday, Moniepoint founder and CEO Tosin Eniolorunda called on cryptocurrency peer-to-peer (P2P) participants to cease their activities, citing the financial sector’s ban on such transactions.