Nigerian fintech companies tighten regulations on cryptocurrency, leading to account blocks for users. Despite the Central Bank of Nigeria’s previous move in 2021 to facilitate cryptocurrency account openings, recent actions have seen some fintech platforms warning against crypto transactions or facing severe penalties.
Moniepoint, PalmPay, and Paga have all cautioned customers that engaging in crypto transactions could result in their accounts being blocked. Moniepoint’s notification on May 2, 2024, explicitly stated compliance with CBN regulations, indicating a reversal from the previous crypto ban.
While a December 2023 circular aimed to lift restrictions and promote crypto-related services, recent actions suggest a tightening of controls. PalmPay customers, including some X users, reported account freezes unless they agree to abstain from crypto transactions.
Paga, citing CBN directives from 2017, reiterated its commitment to regulatory compliance, signaling a broader crackdown on cryptocurrency activities by financial institutions. Despite the CBN’s denial of issuing directives to restrict crypto transactions, recent developments suggest a shift towards tighter regulations, impacting users and fintech platforms alike.
