Fun

Nigerian fintechs crack down on crypto, users face account blocks

News Feed - 2024-05-03 05:05:45

Amaka Nwaokocha16 minutes agoNigerian fintechs crack down on crypto, users face account blocksThe CBN"s attitude to crypto has been inconsistent in recent years and the crackdown contradicts a decision taken in 2021 to facilitate crypto account opening.81 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksSome Nigerian fintech platforms have warned users against connecting their platforms with crypto transactions or face heavy sanctions amid the country’s ongoing efforts to regulate cryptocurrency.


Nigerian fintech firms Moniepoint, PalmPay and Paga have notified customers that their accounts will be blocked if they facilitate crypto transactions with them. This comes after the Central Bank of Nigeria (CBN)ordered some new banks, including Moniepoint, tostop 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.”


This notification marks a reversal of the Central Bank of Nigeria’s previous announcement to lift the crypto ban imposed in 2021. In the CBN circular issued in December 2023, the central bank directed financial institutions to facilitate account opening, provide designated settlement services, and act as intermediaries for firms engaging in crypto asset transactions.Source: Tola Joseph Fadugbagbe


The December circular also stated that it supersedes the one from 2017 and the one from 2021, which restricted banks and other financial institutions from operating accounts for cryptocurrency service providers.


AnX user, who is also a PalmPay customer, said his account was frozen and would only be unfrozen if he agreed to sign an agreement mandating him to abstain from crypto transactions.


Related:Nigerian court postpones money laundering trial of Binance and execs


Paga also emailed customers, stating that it is licensed by the CBN and that it is committed to compliance with 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.”


The circular referenced by Paga is from 2017, and it warns banks and other financial institutions about their relations with crypto exchanges and customers who transact cryptocurrency.


The CBN had earlier denied a reportsaying it issued a directive requiring all banks and financial institutions to identify individuals or entities engaging in transactions with cryptocurrency exchanges and to ensure that such accounts are put on Post No Debit (PND) instruction — a directive issued by a bank or financial institution to restrict certain transactions on a customer’s account — for six months.


The alleged circular also stated that regulated financial institutions engaged in crypto or facilitating payments for crypto exchanges are prohibited.


Cointelegraph reached out Moniepoint for comments on the development but did not receive a response by the time of publication.


Magazine:68% of Runes are in the red — Are they really an upgrade for Bitcoin?# Cryptocurrencies# Government# Nigeria# Cryptocurrency Exchange# RegulationAdd reaction

News Feed

Bitcoin drops below $54K as crypto liquidations near $665M
Jesse Coghlan5 hours agoBitcoin drops below $54K as crypto liquidations near $665MAround $222 million in long Bitcoin positions were liquidated in the past 24 hours, with the price of BTC hitting its lowest point since F
Bitcoin lacks support above $60K, chart shows as BTC price halts gains
William Suberg8 hours agoBitcoin lacks support above $60K, chart shows as BTC price halts gainsBTC price analysis warns that "downside is the path of least resistance" despite Bitcoin rebounding from its latest
Devere Group CEO Predicts Bitcoin Can Replace Gold as Top Safe-Haven Within a Generation
Devere Group CEO Predicts Bitcoin Can Replace Gold as Top Safe-Haven Within a GenerationA few weeks ago, Devere Group CEO and founder Nigel Green said that he believed the U.S. elec
Jack Dorsey and Elon Musk Raise Concerns Over Web3 as Skepticism About Ownership Grows
Jack Dorsey and Elon Musk Raise Concerns Over Web3 as Skepticism About Ownership Grows Former Twitter CEO Jack Dorsey has ignited a debate about web3 after Tesla CEO Elon Musk crit
Fidelity files S-1 application with US SEC for spot ETH EFT with staking
Derek Andersen6 hours agoFidelity files S-1 application with US SEC for spot ETH EFT with stakingStaking rewards could create a taxable event for shareholders and introduce new risks associated with the fund.2709 Total v
Bitmain to Host Miners in 180-Megawatt Data Center in Kazakhstan
Bitmain to Host Miners in 180-Megawatt Data Center in Kazakhstan Crypto mining hardware manufacturer Bitmain has partnered with Enegix to host Antminer S19 Pro d
India’s crypto future hinges on gov’t consultation paper
Amaka Nwaokocha11 hours agoIndia’s crypto future hinges on gov’t consultation paperIndia’s Department of Economic Affairs’ consultation paper is expected to be a watershed moment for crypto regulation in the coun
Don’t Risk Frozen Funds: Coinbase Has a Major Issue, So Choose Non-Custodial Best Wallet Instead
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
William SubergNov 04, 2023Bitcoin bulls defend $34K as trader predicts next BTC price ‘impulse’Bitcoin is setting up for another trip past $35,000, analysis argues, as BTC price settles into the weekend.18636 Total v
Binance’s user assets under custody surpass $100B
Zhiyuan Sun7 hours agoBinance’s user assets under custody surpass $100B“In the past few weeks, there has been no shortage of records, all-time-highs, and crypto industry firsts,” Binance wrote.1030 Total views14 To
Token Projects to Recover $130M from the Kucoin Hack, Devs Condemned for Centralization
Token Projects to Recover $130M from the Kucoin Hack, Devs Condemned for CentralizationThe cryptocurrency community has been discussing the Kucoin hack as a great number of ERC20 pr
Ethereum Whales Offload 143,000 ETH In One Week – More Selling Ahead?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu