LAGOS, Nigeria (VOICE OF NAIJA) – Following directives from the Central Bank of Nigeria (CBN), Nigeria’s top fintech companies are taking steps to regulate the foreign exchange market.
They have issued a warning to customers using their apps for cryptocurrency trading or virtual coin transactions.
The companies in a message said that anyone who violates this directive, would have its account deactivated from functioning.
Recall last week, the apex bank orderd major fintech firms like Kuda, Opay, PalmPay and Moniepoint to stop registering new customers based on the ongoing Know-Your-Customer process.
This was a move by the apex bank to checkmate the fintechs companies over recent money laundering and terrorism financing by crypto platforms.
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Before the CBN’s directive, the Economic and Financial Crimes Commission had obtained a court order to freeze at least 1,146 bank accounts owned by various individuals and companies allegedly involved in illegal foreign exchange transactions.
The EFCC had also been given a nod by court to freeze at least 1,146 bank accounts involved in illegal forex transactions.
Yesterday, four fintechs — Opay, Moniepoint, PalmPay and Paga in a broadcast message to their customers, issued a stern warning on the development.
In a notice issued on Friday, OPay said it would take strict measures against customers who violate its policy, which aligns with the Central Bank of Nigeria’s stance on cryptocurrency trading.
“In compliance with the CBN directive, please note that OPay prohibits any cryptocurrency and all 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 any other virtual currency transaction,” the fintech firm warned.
In a similar move, Paga, a fintech firm that has processed transactions worth $32bn in 15 years of operation, said in an email to its customers, “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,” it said.
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 be advised that failure to comply with these regulations may result in the suspension of your account.
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“Our team is diligently working to ensure full compliance with all regulatory directives, prioritizing the stability and integrity of our platform,” the fintech stated.
On Thursday in Lagos, the founder and CEO of Moniepoint, Tosin Eniolorunda, called on cryptocurrency peer-to-peer (P2P) participants to halt their activities, citing the financial sector’s prohibition on such transactions.
“This is a self-reflection of our industry. As you know, fintech apps are used for fraud. One of the things that led to the most recent announcement is that crypto players were manipulating the naira, especially with the P2P market,” he said.
Recently, key players in the fintech sector were summoned to Abuja for discussions on KYC protocols, underscoring the regulatory scrutiny facing the industry.