Don’t Trade Cryptocurrencies, Opay, PalmPay, Others Warn Customers

Nigerian fintech companies have warned their customers against trading cryptocurrencies or any virtual currencies on their apps, threatening to block any accounts found to be involved in such activities.

At least four fintechs (Opay, Moniepoint, PalmPay and Paga) communicated this fact to their clients on Friday.

Last week, the Central Bank of Nigeria blocked major fintech companies such as Kuda, Opay, PalmPay and Moniepoint from onboarding new customers.

The CBN’s move was linked to an ongoing audit of fintechs’ Know Your Customer process, which has been under scrutiny in recent months over concerns about money laundering and terrorist financing.

Prior to the CBN directive, the Economic and Financial Crimes Commission had obtained a court order to freeze at least 1,146 bank accounts owned by various individuals and companies allegedly involved in illegal foreign exchange transactions.

In a notice issued on Friday, OPay said it would take strict action against customers who violate its policy, which aligns with the Central Bank of Nigeria’s stance on cryptocurrency trading.

“In accordance with the CBN directive, please note that OPay prohibits any cryptocurrency and all virtual currency trading. Any account involved in such activities will be closed and customer information shared with regulatory authorities.

“Make sure your account does not include any cryptocurrency or other virtual currency transactions,” the fintech firm warned.

In a similar move, Paga, a financial technology company that has processed $32 billion worth of transactions in 15 years of operation, said in an email to its customers: “As a Paga account holder, please ensure that your account is not used for cryptocurrencies and virtual transactions.” currency transactions. Paga accounts that violate this rule will be blocked.”

PalmPay, another major player, in an emailed statement said: “We strongly recommend not using your PalmPay account for transactions involving cryptocurrencies or any other virtual assets. Please note that failure to comply with these regulations may result in suspension of your account.

In Lagos on Thursday, Moniepoint founder and CEO Tosin Eniolorunda called on peer-to-peer (P2P) cryptocurrency participants to stop their activities, citing the financial sector’s ban on such transactions.