Strong Message to Opay and PalmPay customers only
Strong Message to Opay and PalmPay customers only
Customers are warned by others not to trade cryptocurrency using Opay and PalmPay. Nigerian fintech firms have threatened to ban any accounts discovered to be involved in cryptocurrency or other virtual currency trading, and they have advised their users against trading in these markets on their apps.
On Friday, this scenario was communicated to the customers of at least four fintech companies: Opay, Moniepoint, PalmPay, and Paga.
The Central Bank of Nigeria barred prominent fintech companies, including Kuda, Opay, PalmPay, and Moniepoint, from accepting new clients last week.
The CBN’s action was related to a continuous assessment of the fintech companies’ Know-Your-Customer procedures. Concerns regarding the financing of terrorism and money laundering have led to investigations into these companies in recent months.
Prior to the directive from the CBN, the Economic and Financial Crimes Commission had secured a court order to freeze at least 1,146 bank accounts that belonged to various individuals. and businesses that were allegedly engaged in illicit foreign exchange operations.
OPay warned in a notification on Friday that it would impose severe penalties on users who disobey its policies, which are in line with the Central Bank of Nigeria’s position on cryptocurrency trading.
Please be advised that OPay, per CBN directives, prohibits trading in virtual currency of any kind, including cryptocurrencies. Any account that participates in these types of activities will be closed, and client data will be accessible to regulatory bodies.
The fintech company issued a warning, saying, “Please make sure that your account does not involve any cryptocurrency or other virtual currency transaction.” In a similar approach, Paga, a fintech company that has handled $32 billion in transactions over its 15 years of business, sent out an email to its clientele, requesting that they make sure their accounts are not being used for cryptocurrency and virtual currency transactions. Accounts on Paga that break this rule will be blocked.
We highly warn against utilizing your PalmPay account for transactions involving cryptocurrencies or any other virtual assets, according to a statement sent by PalmPay, another significant competitor. It is important to note that breaking these rules could lead to your account being suspended.
Citing the financial sector’s ban on peer-to-peer (P2P) cryptocurrency transactions, Tosin Eniolorunda, the founder and CEO of Moniepoint, urged cryptocurrency users in Lagos on Thursday to cease their operations.
