Nigerian renowned fintechs Opay and PalmPay have warned their customers against trading in cryptocurrency or any virtual currency on their apps, threatening to block any accounts engaging in such activities. This warning follows an earlier directive by the CBN to OPay, Moniepoint, Palmpay, and Kuda Bank to stop onboarding new customers due to unauthorised forex dealings.
In a notice issued on Friday, Opay said it would block any account found engaging in such trading and forward the account owner's details to the apex bank.
"In compliance with the CBN directive, please note that OPay prohibits any cryptocurrency and all virtual currency trading. Any account engaging in such activities will be closed, and customer information will be shared with regulatory authorities," Opay said.
"Please ensure that your account does not involve any cryptocurrency or any other virtual currency transaction," Opay added.
In a similar move, PalmPay, another major player, said in an emailed statement, "We strongly advise against using your PalmPay account for transactions involving cryptocurrencies or other virtual assets. Please be advised that failure to comply with these regulations may result in the suspension of your account".
Before the CBN's directive, the Economic and Financial Crimes Commission had obtained a court order to freeze at least 1,146 bank accounts owned by various individuals and companies allegedly involved in illegal foreign exchange transactions.
Thus, the CBN's move was linked to an ongoing audit of the Know-Your-Customer process of the fintechs, which have been under scrutiny in recent months over concerns around money laundering and terrorism financing. More fintechs are expected to emulate the steps taken by Opay and PalmPay to curb unauthorised forex dealings and fraudulent activities.
