Nigerian fintech companies have warned their customers against trading in cryptocurrency or any virtual currency on their apps, threatening to block any accounts found engaging in such activities.
Jerrymusa.com reports that least four fintechs—Opay, Moniepoint, PalmPay, and Paga—communicated this development to their customers on Friday.
The Central Bank of Nigeria barred prominent fintech companies, including Kuda, Opay, PalmPay, and Moniepoint, from accepting new clients last week.
Some Fintech Group Under CBN Investigation
The CBN’s action was related to a continuous assessment of the fintech companies’ Know-Your-Customer procedures. These companies have been under investigation in recent months due to worries about money laundering and the financing of terrorism.
Prior to the direction from the CBN, a court order had been obtained by the Economic and Financial Crimes Commission to freeze at least 1,146 bank accounts belonging to different people and businesses that were allegedly engaged in illicit foreign exchange operations.
OPay warned in a notification on Friday that it would impose severe penalties on users who disobey its policies, which are in line with the Central Bank of Nigeria’s position on cryptocurrency trading.
Please be aware that OPay forbids the trade of any virtual money, including cryptocurrencies, in accordance with the instructions issued by the CBN. Any account that engages in these kinds of activities will be closed, and regulatory authorities will receive access to client information.
The fintech company issued a warning, saying, “Please make sure that your account does not involve any cryptocurrency or other virtual currency transaction.”
In a similar approach, Paga, a fintech company that has handled $32 billion in transactions over the course of its 15 years of business, sent out an email to its clientele, requesting that they make sure their accounts are not being used for cryptocurrency and virtual currency transactions. Paga accounts that break this rule would be closed, it stated.