Several fintech platforms in Nigeria have issued warnings to their users, cautioning them against using their accounts for cryptocurrency transactions. Moniepoint, PalmPay, and Paga, Nigerian fintech firms, have informed their customers that their accounts will be blocked if they engage in crypto transactions. This move follows the Central Bank of Nigeria’s (CBN) instruction to several new banks, including Moniepoint, to stop accepting new customers.
In a notification sent to customers on May 2, 2024, Moniepoint stated that this announcement represents a reversal of the CBN’s previous decision to lift the ban on cryptocurrencies imposed in 2021. In a circular issued in December 2023, the central bank directed financial institutions to facilitate account opening, provide settlement services, and act as intermediaries for companies involved in crypto asset transactions.
The December circular also superseded previous ones from 2017 and 2021, which prohibited banks and other financial institutions from operating accounts for cryptocurrency service providers.
A PalmPay customer, who is also a user of One X, revealed that his account had been frozen and would only be unfrozen if he agreed to sign an agreement stating that he would refrain from crypto transactions.
Paga also sent emails to its customers, emphasizing that it is licensed by the CBN and is committed to complying with all regulations. The circular referenced by Paga is from 2017 and warns banks and financial institutions about their relationships with crypto exchanges and customers engaged in cryptocurrency transactions.
The CBN had previously denied reports claiming that it had issued a directive requiring banks and financial institutions to identify individuals or entities involved in transactions with cryptocurrency exchanges and to place such accounts under a “Post No Debit” instruction, which restricts certain transactions for six months.
The circular further stated that regulated financial institutions involved in crypto or facilitating payments for crypto exchanges are prohibited.
Cointelegraph attempted to contact Moniepoint for comments on the situation but did not receive a response at the time of publication.
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