A surge in concerns among Nigerian residents follows the crackdown on crypto assets within the financial industry.
Triggered by the classification of cryptocurrency trading as a national security threat by Nigeria’s National Security Adviser (NSA), key fintech startups in the country, including Opay, Moniepoint, Paga, and Palmpay, have announced measures to freeze accounts engaged in cryptocurrency transactions and report such activities to law enforcement agencies.
Recent directives from the Central Bank of Nigeria (CBN) have barred prominent fintech firms like Kuda, Opay, PalmPay, and Moniepoint from accepting new clients. This move is linked to ongoing evaluations of their Know-Your-Customer procedures amid concerns over money laundering and terrorism financing.
Despite the ban on banks providing services to cryptocurrency customers, Nigeria ranks second globally in Bitcoin interest. The country attributes the recent depreciation of the naira partly to the crypto sector. Consequently, the Economic and Financial Crimes Commission (EFCC) has obtained a court order to freeze over 1,146 bank accounts allegedly involved in illicit foreign exchange dealings.
Opay has issued a notification warning users of severe penalties for violating its policies, aligned with the CBN’s stance on cryptocurrency trading. However, this appears contradictory to prior directives from the CBN instructing financial institutions to facilitate crypto-related transactions.
Market leaders perceive these actions as counterproductive, as a significant portion of peer-to-peer (P2P) activity occurs through informal channels rather than established platforms like Binance. Despite governmental skepticism, Nigeria boasts the largest crypto economy in Africa, driven by its youthful population’s innovation.
The recent appointment of Emomotimi Agama as the new Director-General of the Securities and Exchange Commission (SEC) has sparked optimism within Nigeria’s blockchain community. Agama’s pro-crypto track record is seen as a positive sign for the regional crypto sector, hinting at potential shifts in regulatory attitudes towards digital assets.
