Nigerian Financial Technology Firms Implement Central Bank’s Cryptocurrency Trading Prohibition

Multiple fintech enterprises in Nigeria have issued warnings to their patrons, advising against the utilisation of their services for any cryptocurrency-related transactions. Fintech entities such as Opay, Moniepoint, PalmPay, and Paga have openly declared that they must freeze accounts to comply with directives issued by the Central Bank of Nigeria (CBN), which forbids any activities involving digital currencies.

These developments follow the central bank’s decision to halt new customer onboarding by prominent fintech companies pending a Know Your Customer (KYC) audit. This stance reflects additional regulatory measures taken in response to concerns over money laundering and the financing of terrorism within the industry.

In their declarations, the fintech companies have acknowledged their compliance with the CBN’s regulations concerning cryptocurrency trading. Digital currency entities including OPay and Paga have informed their user base that any investment activities involving cryptocurrencies can lead to account termination and notifications to the regulatory authorities.

These measures are in tandem with the Central Bank of Nigeria’s strategy to maintain stability of the local currency and to fight against misconduct in the forex market. In previous actions, the CBN had frozen numerous accounts for engaging in illegal forex activities. However, it was recently made clear that the CBN did not direct banks to target accounts dealing with cryptocurrencies, correcting what was earlier reported as misinformation.

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