Several Nigerian fintech companies have issued warnings to their customers, advising against engaging in cryptocurrency or virtual currency trading on their platforms. Opay, Moniepoint, PalmPay, and Paga are among the companies that have communicated this message to their users.
The warnings come in the wake of a directive from the Central Bank of Nigeria (CBN) last week, which barred major fintech firms, including Kuda, Opay, PalmPay, and Moniepoint, from onboarding new customers. The CBN’s action is part of an ongoing audit of the Know-Your-Customer (KYC) process of these fintech companies, prompted by concerns surrounding money laundering and terrorism financing.
Before the CBN’s directive, the Economic and Financial Crimes Commission (EFCC) had obtained a court order to freeze over 1,146 bank accounts belonging to individuals and companies allegedly involved in illegal foreign exchange transactions.
In response to these developments, Opay issued a notice on Friday, stating its intention to implement strict measures against customers found violating its policy, which aligns with the CBN’s stance on cryptocurrency trading.
The move underscores the growing regulatory scrutiny faced by the cryptocurrency market in Nigeria, as authorities aim to address concerns related to financial crime and illicit activities. It also highlights the need for users of fintech platforms to adhere to regulatory guidelines and policies to avoid potential account restrictions or penalties.