Nigerians left in shock as CBN, FG clamp down on crypto market

NAIRAMETRICS 

A growing number of Nigerian residents are raising concerns following clampdown on crypto assets via the financial industry

Following the classification of cryptocurrency trading as a national security issue by Nigeria’s National Security Adviser (NSA), at least four fintech startups operating in the country—Opay, Moniepoint, Paga, and Palmpay—will block the accounts of customers engaging in cryptocurrency transactions and report those transactions to law enforcement agencies.

Nigerian fintechs close shop on crypto industry

The Central Bank of Nigeria (CBN) barred prominent fintech companies, including Kuda, Opay, PalmPay, and Moniepoint, from accepting new clients last week.

The apex bank’s action was related to a continuous assessment of the fintech companies’ Know-Your-Customer procedures. These companies have been under investigation in recent months due to worries about money laundering and financing of terrorism.

The African most populated country comes in second for Bitcoin interest globally, even though the FG had forbidden banks from providing services to cryptocurrency customers. The African country, which has long struggled with high inflation, has held the crypto sector party responsible for the recent naira’s depreciation.