Following the decision of the Central Bank of Nigeria (CBN) to stop major fintech firms from onboarding new customers, the Nigerian fintech companies comprising Opay, Palmpay, Moniepoint, and Kuda 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.
The Informant247 reports that at least four fintechs—Opay, Moniepoint, PalmPay, and Paga—communicated the new directive to their customers on Friday.
It would be recalled that the Central Bank of Nigeria (CBN) had last week stopped major fintech firms from onboarding new customers, owing to the ongoing audit of the Know-Your-Customer process of the fintech, which has been under scrutiny in recent months over concerns around money laundering and terrorism financing.
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.
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.”
Meanwhile, Opay, in a notice issued on Friday, 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.
Similarly, PalmPay, 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.