Nigerian financial technology companies have cautioned their customers not to engage in cryptocurrency or any digital money trading using their applications, and have warned that they will shut down any accounts found participating in such activities.
At least four financial technology companies—Opay, Moniepoint, PalmPay, and Paga—have informed their customers about this development on Friday.
Recently, the Central Bank of Nigeria prohibited major financial technology companies such as Kuda, Opay, PalmPay, and Moniepoint from enrolling new customers.
The Central Bank of Nigeria's action was related to an ongoing evaluation of the Know-Your-Customer process of these financial technology companies, which have been under scrutiny lately due to concerns regarding money laundering and the financing of terrorist activities.
Prior to the directive from the Central Bank of Nigeria, the Economic and Financial Crimes Commission had secured a court order to freeze at least 1,146 bank accounts belonging to various individuals and companies allegedly involved in illicit foreign exchange transactions.
OPay issued a notice on Friday stating that it will impose strict measures against customers who violate its policy, which aligns with the Central Bank of Nigeria's position on cryptocurrency trading.
“In accordance with the CBN directive, please note that OPay prohibits all cryptocurrency and virtual currency trading. Any accounts 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 financial technology firm cautioned.
Similarly, Paga, a financial technology company that has facilitated transactions amounting to $32 billion over 15 years, warned its customers in an email, “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, advised in an emailed statement, “We strongly discourage the use of your PalmPay account for transactions involving cryptocurrencies or any other virtual assets. Please be aware that failure to comply with these regulations may lead to the suspension of your account.
On Thursday in Lagos, the founder and CEO of Moniepoint, Tosin Eniolorunda, urged cryptocurrency peer-to-peer (P2P) participants to stop their activities, citing the financial sector’s prohibition on such transactions.
