The Nigerian Central Bank has taken decisive action to curb crypto trading by instructing four prominent fintech companies – Moniepoint, Palmpay, Opay, and Kuda – to stop the creation of new accounts.
This directive aims to impede crypto traders’ access to these platforms, which are integral to the cryptocurrency ecosystem in Nigeria.
An insider familiar with the situation disclosed that this suspension is temporary, corroborated by a statement from one of the affected firms mentioned in the report.
The Central Bank’s move follows the recent action by the Economic and Financial Crimes Commission (EFCC), which froze over 1,140 bank accounts allegedly involved in illicit foreign transactions.
Sources reveal that the Central Bank had engaged in discussions with the affected fintech companies before issuing the directive.
The Central Bank’s concern lies in cryptocurrency traders exploiting these platforms to disrupt the foreign exchange (FX) market.
There is a disparity in the Central Bank’s perception of fintech firms compared to traditional banking institutions.
It is noted that the Central Bank has yet to establish a favourable relationship with fintech companies, unlike with banks.
The Nigerian Naira’s struggles have led regulators to attribute economic challenges to cryptocurrencies.
Bayo Onanuga, a Presidential aide, singled out Binance for reportedly setting unfavourable exchange rates for Nigeria, resulting in significant capital outflow from the economy.
This recent directive from the Central Bank comes shortly after denying allegations of mandating local banks to freeze accounts associated with unlicensed crypto service providers.
Initial reports suggested that the regulator had imposed a six-month “Post No Debit (PND) instruction” on crypto exchanges, which the Central Bank refuted.
