• Nigerian fintech firms reminiscent of Moniepoint, PalmPay, and Paga are stepping up their efforts towards cryptocurrencies.
• Customers face account blocks as Nigerian fintech platforms implement CBN directive.
• Moniepoint will notify prospects who’ve made cryptocurrency transactions of account closure.

A number of Nigerian fintech platforms, together with Moniepoint, PalmPay, and Paga, have strengthened their measures towards crypto transactions. These measures are consistent with directives from the Central Financial institution of Nigeria (CBN). Customers of those platforms at present face the danger of getting their accounts blocked in the event that they interact in cryptocurrency-related actions.

On Could 2, 2024, Moniepoint issued a discover to its prospects. It mentioned any accounts concerned in cryptocurrency transactions could be closed. It additionally mentioned that consumer particulars can be shared with related authorities. This step follows the CBN’s pointers for regulating the digital forex area.

Equally, PalmPay and Paga additionally inform their prospects concerning the dangers of partaking in digital forex transactions. PalmPay customers reported that their accounts had been suspended as a result of such habits. The account freeze will solely be lifted if he agrees to chorus from future cryptocurrency transactions.

In a current e-mail, Paga reiterated its dedication to adjust to CBN rules. They reminded prospects that buying and selling in cryptocurrencies is strictly prohibited. That is in accordance together with his CBN Round of 2017. The round warns monetary establishments about their interactions with digital forex exchanges and people buying and selling in digital currencies.

In December 2023, the CBN seems to have softened its stance on cryptocurrencies. Monetary establishments have issued a round permitting digital forex firms to open accounts and supply providers. The round additionally claims to supersede the earlier circulars of 2017 and 2021. Nonetheless, current actions by fintech firms counsel a stricter utility of this rule.

Earlier, Coinedition Media reported on directions from the CBN to all banks and monetary establishments. They had been instructed to establish and monitor people or entities buying and selling on cryptocurrency exchanges. In line with these directives, such accounts should be positioned below Publish No Debit (PND) orders for a interval of six months.

Primarily based on PND directions, prospects are prohibited from finishing up sure transactions. This consists of withdrawals and funds of funds. The CBN additionally recognized a number of cryptocurrency exchanges reminiscent of Bybit, KuCoin, OKX, and Binance. These platforms are mentioned to lack the required working licenses in Nigeria.

The transfer is a part of broader efforts by the Nigerian authorities to control the cryptocurrency market. The federal government goals to stop potential dangers related to unregulated digital currencies. These dangers embrace cash laundering and different unlawful actions.