As a researcher with experience in the Nigerian fintech industry, I find the recent developments surrounding cryptocurrency regulations and the warning from Moniepoint, PalmPay, and Paga to their customers against engaging in crypto transactions to be a complex issue.
As a crypto investor, I’ve received notices from some Nigerian fintech platforms advising me against integrating their services with my cryptocurrency transactions. Failure to heed this warning may result in significant penalties as part of the country’s ongoing efforts to regulate digital currencies.
Moniepoint, PalmPay, and Paga, fintech companies based in Nigeria, have informed their users that they will face account freezes if they engage in cryptocurrency transactions through these platforms. This announcement follows the Central Bank of Nigeria (CBN) directive for certain banks such as Moniepoint to cease onboarding new customers.
In the notification issued to customers on May 2, 2024, Moniepoint said:
“In line with CBN regulation, we will close the account of anyone engaging in crypto or other virtual assets transactions and share their details with relevant authorities.”
The Central Bank of Nigeria (CBN) has now changed course from its earlier decision to prohibit cryptocurrencies, as stated in a circular released in December 2023. In this new directive, the CBN instructs financial institutions to enable account openings, offer designated settlement services, and act as intermediaries for businesses dealing with crypto assets transactions.
The December announcement overruled the directives from 2017 and 2021, prohibiting financial establishments like banks from managing crypto service providers’ accounts.
As an analyst, I’ve come across feedback from a user who holds an X account concurrently with being a PalmPay customer. This individual reported that his PalmPay account has been frozen and the only way to have it unfrozen is by agreeing to sign a contract prohibiting him from carrying out cryptocurrency transactions.
As a compliance analyst at Paga, I took it upon myself to reassure our valued customers via email. I wanted to assure them of our legitimacy and commitment to regulatory standards. Therefore, I highlighted that Paga is duly licensed by the Central Bank of Nigeria (CBN) and reaffirmed our unwavering dedication to adhering to all CBN regulations.
“Pursuant to the CBN circular with reference FPR/DIR/GEN/CIR/06/10, we wish to remind you that dealing in or facilitating transactions in cryptocurrency and other virtual currencies is not permitted.”
In simpler terms, a circular issued by Paga in the year 2017 advises banks and financial institutions regarding dealing with crypto exchanges and clients involved in cryptocurrency transactions.
The Central Bank of Nigeria (CBN) previously refuted claims that they ordered all banks and financial institutions to take specific actions regarding cryptocurrency transactions. More precisely, it was alleged that the CBN instructed these entities to identify individuals or businesses involved in crypto exchange dealings and place their accounts under a six-month Post No Debit (PND) restriction. However, this directive was never confirmed by the CBN.
The reported directive indicated that regulated financial entities are barred from participating in cryptocurrency transactions or providing services to crypto exchanges.
CryptoMoon attempted to contact Moniepoint for their perspective on recent developments, yet failed to receive a reply before publishing the article.
Read More
- DOGS PREDICTION. DOGS cryptocurrency
- SQR PREDICTION. SQR cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- CLOUD PREDICTION. CLOUD cryptocurrency
- STG PREDICTION. STG cryptocurrency
- USD HKD PREDICTION
2024-05-03 12:07