Several fintech platforms in Nigeria have issued warnings to their users, cautioning them against using their accounts for cryptocurrency transactions. Moniepoint, PalmPay, and Paga, three Nigerian fintech firms, have informed their customers that their accounts will be blocked if they engage in crypto transactions. This decision comes as the Central Bank of Nigeria (CBN) has instructed certain banks, including Moniepoint, to halt the onboarding of new customers.
In a notification sent to customers on May 2, 2024, Moniepoint stated that the CBN’s decision marks a reversal of its previous announcement to lift the crypto ban imposed in 2021. In a circular issued in December 2023, the CBN directed financial institutions to facilitate account opening, provide designated settlement services, and act as intermediaries for companies involved in crypto asset transactions.
The December circular also stated that it supersedes previous circulars from 2017 and 2021, which had restricted banks and other financial institutions from operating accounts for cryptocurrency service providers.
A PalmPay customer, who is also a user of the One X platform, revealed that his account has been frozen and will only be unfrozen if he agrees to sign an agreement stating that he will refrain from engaging in crypto transactions.
Paga also sent emails to its customers, informing them that it holds licenses from the CBN and is committed to complying with all regulations. The circular referenced by Paga is from 2017 and warns financial institutions about their relationships with crypto exchanges and customers involved in cryptocurrency transactions.
Previously, the CBN had denied a report claiming that it had issued a directive requiring all banks and financial institutions to identify individuals or entities engaged in transactions with cryptocurrency exchanges and to place such accounts on a “Post No Debit” instruction for six months. This instruction restricts certain transactions on a customer’s account. The circular also stated that regulated financial institutions involved in crypto or facilitating payments for crypto exchanges are prohibited from doing so.
Cointelegraph reached out to Moniepoint for comment on the situation but did not receive a response before publication.
In other news, a magazine has reported that 68% of Runes are currently in the red. The article questions whether they are truly an upgrade for Bitcoin.