Opay and PalmPay, Among Others, Caution Customers on Cryptocurrency Trading
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Fintech organizations in Nigeria have issued warnings to their users to refrain from dealing with cryptocurrencies or any virtual currencies using their platforms. Accounts identified participating in these transactions are at risk of being deactivated.
Companies including Opay, Moniepoint, PalmPay, and Paga have relayed such notifications to their users last Friday.
Previously, the Central Bank of Nigeria (CBN) mandated top fintech enterprises such as Kuda, Opay, PalmPay, and Moniepoint to halt the registration of new users.
This decision aligns with an inspection of the Fintech firms’ adherence to Know-Your-Customer (KYC) standards due to worries regarding potential money laundering and terrorism financing.
Before these directives from the CBN, the Economic and Financial Crimes Commission had secured a court ruling to freeze over a thousand bank accounts suspected of illegal forex dealings.
Opay, in their recent statement, clarified they would enact strict repercussions for any policy violations, aligning with CBN regulations concerning the prohibition of cryptocurrency trades.
“In line with the CBN’s guideline, Opay has banned all trading of cryptocurrencies and virtual currencies. Violating accounts are subjected to termination and customer details might be reported to the authorities,” Opay cautioned.
Paga reiterated the warning, emphasizing to its users that accounts should not be engaged in crypto transactions, failing which accounts may face suspension.
Similarly, PalmPay urged its patrons to desist from crypto-related transactions, noting the potential suspension of their accounts for non-compliance while affirming their commitment to regulatory adherence.
At a recent event in Lagos, Moniepoint’s CEO, Tosin Eniolorunda, called for a complete stop to cryptocurrency P2P exchanges, discussing the financial industry’s restrictions on these transactions.
“The fintech industry needs introspection. Apps often become tools for fraudulent activities. The recent directive was partly due to the manipulation of the naira by crypto players, particularly in P2P markets,” he explained.
These announcements come amidst recent summons of fintech authorities to discuss KYC measures in Abuja, highlighting the regulatory focus on the industry.
The CBN also took action against the cryptocurrency exchange Binance, suspecting them of manipulating the naira’s value.
Prior to Binance ceasing operations, CBN Governor Olayemi Cardoso stated that about $26bn was transacted through Binance Nigeria by unidentified entities over a year.
In response, the CBN and the Office of the National Security Adviser (ONSA) have committed to collaborating to investigate and sanction those engaged in illegal FX market activities.
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