Nigerian Central Bank halts fintech new accounts to curb crypto trading

As a seasoned crypto investor with a deep understanding of the Nigerian financial landscape, I find this latest development from the Central Bank of Nigeria (CBN) both intriguing and disheartening. While it’s no secret that the Naira has been struggling, the blame game between regulators and crypto traders seems to be overshadowing the potential benefits that these digital assets could bring to the Nigerian economy.

As a researcher, I’ve come across information indicating that the Central Bank of Nigeria has instructed four fintech companies to halt the creation of new customer accounts. The reason behind this directive is to prevent crypto traders from utilizing these platforms for their transactions.

According to a report from Techcabal, Nigeria’s Central Bank has instructed Moniepoint, Palmpay, Opay, and Kuda, which are significant fintech players in the country, to halt the creation of new accounts. These firms play a pivotal role in enabling cryptocurrency trading within Nigeria.

A knowledgeable executive commented in the article that this was merely a brief halt in the project’s progression, while one of the companies implicated in the report likewise verified this fact.

As an analyst, I’d rephrase it as follows: Following the EFCC’s action of freezing around 1,140 suspected illicitly acquired bank accounts, the report stated that a directive had been issued recently.

The CBN had reportedly held talks with the impacted companies before releasing the instruction, a separate report stated. The central bank supposedly perceived that cryptocurrency dealers were exploiting fintech channels to unsettle the foreign exchange market.

He further mentioned that the Central Bank of Nigeria (CBN) still needs to enhance its viewpoint towards fintech companies in contrast to conventional institutions such as banks, who currently enjoy a more favorable standing with the regulatory body.

As an analyst, I would rephrase it as follows: In my analysis, the depreciation of the Naira has led regulators to point fingers at cryptocurrencies for exacerbating Nigeria’s economic woes. Particularly, Bayo Onanuga, a presidential aide, accused Binance of determining the exchange rates in Nigeria, allegedly resulting in over $26 billion flowing out of the economy.

A few days ago, the Central Bank of Nigeria (CBN) refuted allegations that it had ordered local banks to prevent transactions on accounts associated with unauthorized cryptocurrency service providers within the country. Previously, there were rumors that the bank had issued a “Post No Debit (PND)” directive for a six-month period against crypto exchanges.

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2024-05-01 11:12