Several Nigerian fintech companies, including Opay, Moniepoint, PalmPay, and Paga, have issued warnings to their customers, advising against engaging in cryptocurrency trading or transactions involving virtual currencies. These warnings come amidst increased regulatory scrutiny and recent directives from the Central Bank of Nigeria (CBN) regarding cryptocurrency activities.
The CBN recently halted major fintech firms like Kuda, Opay, PalmPay, and Moniepoint from onboarding new customers as part of an audit of their Know-Your-Customer (KYC) processes. This move follows concerns raised over potential money laundering and terrorism financing associated with cryptocurrency transactions.
In response to the regulatory environment, Opay announced strict measures against customers found violating its policy, which aligns with the CBN’s stance on cryptocurrency trading. The fintech company stated that accounts engaging in cryptocurrency activities would be closed, with customer information shared with regulatory authorities.
Similarly, Paga, a fintech firm with a significant transaction volume of $32 billion over 15 years, cautioned its customers against using their accounts for cryptocurrency transactions. The company warned that accounts found in violation of this regulation would be blocked.
PalmPay, another prominent player in the Nigerian fintech space, emphasized its stance against cryptocurrency transactions and urged customers to refrain from using their accounts for such activities. Non-compliance with these regulations may result in the suspension of user accounts, the company cautioned.
Founder and CEO of Moniepoint, Tosin Eniolorunda, reinforced the fintech sector’s position on cryptocurrency transactions during an event in Lagos. He called on participants in cryptocurrency peer-to-peer (P2P) trading to cease their activities, echoing the broader regulatory restrictions on such transactions within the financial sector.
