Fintechs rally to stave off looming sanctions from the Central Bank of Nigeria (CBN) targeting firms facilitating cryptocurrency transactions, four prominent Fintech companies – Opay, Kuda, Monie Point, and Palmpay – are ramping up their efforts.
Recent directives from the office of the National Security Adviser (NSA) have compelled these Fintechs to halt the onboarding of new customer accounts, indicating a potential precursor to the CBN’s anticipated crackdown on peer-to-peer cryptocurrency trading.
Sources within the industry suggest that this directive signals the imminent ban on crypto trading platforms such as Kucoin and Bybte, effectively preventing Nigerian crypto traders from conducting transactions involving USDT.
Experts interpret these actions as preparatory steps ahead of an official announcement by the CBN, with Fintech apps like Moniepoint, Paga, and Palmpay already implementing measures to block accounts engaged in cryptocurrency transactions and reporting them to law enforcement. The NSA’s classification of crypto trading as a matter of national security has further intensified the crackdown.
In a communication addressed to its customers, Palmpay Management underscored the gravity of the situation, emphasizing the prohibition of crypto-related transactions, including cryptocurrency trading, through PalmPay accounts. The statement also warned against engaging in gambling platforms and other illicit activities, citing strict adherence to CBN guidelines as imperative to avoid disruptions to customer accounts.
Furthermore, Palmpay affirmed its commitment to enforcing compliance with CBN regulations, stating that any accounts found violating these guidelines would face immediate action, including account blocking or other measures stipulated by the CBN.
As the regulatory landscape surrounding cryptocurrency in Nigeria continues to evolve, Fintech companies are navigating turbulent waters, striving to maintain regulatory compliance while safeguarding their operations and customer base.
