As a long-term crypto investor with a deep interest in the Nigerian market, I find the recent developments surrounding the Central Bank of Nigeria’s (CBN) directive to fintech firms OPay, Kuda Bank, Moniepoint, and PalmPay to halt new customer onboarding a mixed bag.
The Central Bank of Nigeria (CBN) ordered four financial technology firms to cease the enrollment of new clients as part of its initiatives to enhance Know Your Customer (KYC) regulations in both cryptocurrency and traditional investment sectors within Nigeria.
As a financial analyst, I’ve come across recent developments where Nigerian fintech companies OPay, Kuda Bank, Moniepoint, and PalmPay have temporarily halted the onboarding of new customers. This decision stems from an ongoing review of their Know Your Customer (KYC) processes, as confirmed by a reliable source familiar with the situation, according to TechCabal’s report.
“The CBN feels like a lot of crypto traders were leveraging the fintech platforms to disrupt the FX (Forex) market.”
Immediately following the Economic and Financial Crimes Commission (EFCC) of Nigeria preventing access to 1,146 suspicious bank accounts due to alleged unauthorized foreign exchange transactions, there is a new restriction in place.
As a crypto investor using the services of these fintech firms, I can continue to deposit and transfer funds without interruption. Recently, one of these companies made an announcement:
“We’ve temporarily paused new signups on our platform. This means that you’ll be unable to open a new account at the moment. We apologize for any inconvenience this may cause.”
A review of the 1,146 banking accounts that were blocked revealed that just ten percent belonged to fintechs, while the remaining majority were held by commercial banks.
The intervention by the government is spearheaded by the Central Bank of Nigeria (CBN), with the National Security Agency (NSA) and Economic and Financial Crimes Commission (EFCC) providing significant backup. In October 2023, Fidelity Bank took action to halt all outgoing transactions to the same quartet of fintechs due to Know Your Customer (KYC) issues.
The absence of Know Your Customer (KYC) protocols on these platforms has led to an increase in fraudulent activities, including tax evasion and money laundering. An executive from one of the companies explained that the halt on accepting new customers is merely “temporary,” and once the ongoing review of their KYC procedures is completed, they will resume business as usual.
Enthusiasts, investors, and businesspeople expressed delight upon learning that Emomotimi Agama had been named the new head of the Securities and Exchange Commission (SEC).
As a market analyst, I can tell you that this appointment is designed to bring order to the capital market, boost investor trust, and foster economic progress. In conversation with CryptoMoon, Nathaniel Luz, the CEO of Flincap – a leading over-the-counter crypto exchange – shares his enthusiasm about this development.
The new chair is anticipated by the community to collaborate closely with startups, aiming to simplify the licensing procedure for running cryptocurrency platforms in Nigeria.
Likewise, Lucky Uwakwe, who is the chair of the Blockchain Industry Coordinating Committee of Nigeria (BICCon) and the founder of SaBi Exchange, viewed the announcement as a “clever choice.”
Read More
- Top gainers and losers
- JASMY PREDICTION. JASMY cryptocurrency
- DOP PREDICTION. DOP cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- LUNA PREDICTION. LUNA cryptocurrency
- KAI PREDICTION. KAI cryptocurrency
- SILLY PREDICTION. SILLY cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- CHZ PREDICTION. CHZ cryptocurrency
- DODO PREDICTION. DODO cryptocurrency
2024-05-01 11:04