Fintech companies in Nigeria are speaking out against cryptocurrency, and users are feeling the heat

Paga, Moniepoint, and PalmPay are among the Nigerian fintechs that have recently tightened their stance on cryptocurrency.

A number of Nigerian fintech platforms have stepped up their efforts to prevent crypto transactions. These platforms include Paga, Moniepoint, and PalmPay. All of these measures are in accordance with what the CBN has ordered. Participation in crypto-related activities may now result in account suspension for users of these sites.

Moniepoint informed its clients on May 2, 2024. It announced the closure of accounts associated with cryptocurrency activities. The fact that user data will be shared with the appropriate authorities was also emphasized. This action is in accordance with the CBN’s regulations for the digital currency market.

Both PalmPay and Paga have warned their users about the dangers of using cryptocurrencies. One PalmPay customer said that these kinds of actions led to the freezing of his account. His agreement to refrain from future cryptocurrency transactions is a necessity for the account to be unfrozen.

Paga has just confirmed in an email that it will continue to follow CBN’s rules and regulations. They cautioned their clients that dealing in cryptocurrencies is against the law. This follows a circular from the CBN in 2017. Financial institutions should exercise caution when dealing with cryptocurrency exchanges and customers who make cryptocurrency transactions, according to the circular.

The Central Bank of Nigeria seemed to soften its position on cryptocurrency in December 2023. It released a circular authorizing banks to create accounts and provide services to cryptocurrency companies. Additionally, this circular asserted its superiority over its predecessors from 2017 and 2021. But new moves by fintech companies point to stricter regulation.

Prior to this, Coinedition Media covered the CBN’s orders to all banks and other financial organisations. Someone told them to track down crypto exchange users and keep an eye on them. A Post No Debit (PND) order is required for these accounts for a duration of six months in accordance with these instructions.

Some types of transactions are off-limits to consumers under the PND directives. Payments and money withdrawals are examples of this. Bybit, KuCoin, OKX, and Binance are among the cryptocurrency exchanges that the CBN has uncovered. Supposedly, these sites do not have the appropriate licences to operate in Nigeria.

The Nigerian government is making strides to control the crypto currency sector with this decision. The dangers of unchecked digital currency are something the government is trying to avoid. Money laundering and other forms of criminal activity are among these concerns.

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