The Central Bank of Nigeria (CBN) has told four significant financial tech companies not to open new accounts. That’s it, no more trading in crypto. According to Techcabal, a Nigerian news site, this order is for big names in the fintech business, such as Moniepoint, Palmpay, Opay, and Kuda. Cryptocurrency trading has become easier for people in Nigeria thanks to these companies.
People who know about the situation say that the order is only in place for a short time. This makes it look like the CBN is taking steps to calm people’s concerns about how cryptocurrencies might impact the business of the country. One of the companies affected confirmed the stoppage and said it would only last for a short time. But the CBN hasn’t said anything public about the order yet.
Nigerian EFCC Crackdown Leads to CBN’s Fintech Account Freeze Amidst Crypto Trading Risks
The move comes after the Economic and Financial Crimes Commission (EFCC) shut down more than 1,140 bank accounts that were thought to be involved in illegal business in other countries. Fintech companies can’t open new accounts at the Central Bank of Nigeria. Some people think this is part of a bigger plan to lower the risks of cryptocurrency trading, which the government believes could mess up the foreign exchange (FX) market.
People who know about the case say that the CBN discussed the fintech companies that would be affected before giving the order. There is still a difference between how people see these fintech companies and natural banks, though. There are many types of banks in Nigeria, but the Central Bank of Nigeria (CBN) likes traditional banks because it thinks it can better regulate them.
The ongoing issues with the Nigerian Naira have made government officials even more worried about how cryptocurrencies will impact the country’s business. A presidential aide named Bayo Onanuga recently said that sites like Binance cause the country’s economic problems. He said these deals were to blame because they hurt Nigeria’s currency, which led to a lot of funds leaving the country.
Some people in the cryptocurrency community thought that the CBN had told local banks to freeze the accounts of crypto service providers that weren’t listed. This made a lot of people angry and worried. A “Post No Debit (PND) instruction” had been in place for six months, according to the first reports. The CBN strongly denied this story.
Nigeria can’t keep track of cryptocurrency because its economy isn’t stable. The latest order from the CBN shows that they are still working to keep the economy strong and make crypto trade safer.
As Nigeria grapples with the complexities of regulating cryptocurrencies amidst economic uncertainties, the CBN’s latest directive underscores the ongoing efforts to mitigate risks associated with crypto trading while maintaining stability in the financial sector.
