Nigerian Central Bank Halts New Accounts to Combat Crypto Trading

The Central Bank of Nigeria (CBN) has directed well-known fintech companies, such as Moniepoint, Palmpay, Opay, and Kuda, to halt the establishment of new accounts in a move that suggests increased regulatory scrutiny. According to Techcabal, a Nigerian news site, this instruction highlights the rising worries over the role that fintech platforms play in enabling bitcoin trade in the nation.

An executive with knowledge of the situation claims that the instruction is only intended to be a temporary solution. A comment from one of the impacted companies that was included in the paper confirmed this position and emphasized how erratic regulatory actions in the fintech sector can be.

CBN’s Concerns and Engagement with Fintech Entities

Sources reveal that the directive follows engagements between the CBN and the impacted firms. The CBN reportedly perceives cryptocurrency traders as utilizing fintech platforms to disrupt the foreign exchange (FX) market, further emphasizing its stance on safeguarding financial stability amidst evolving market dynamics.

In the face of Nigeria’s economic difficulties, cryptocurrencies have drawn more regulatory scrutiny, with the accusation being made that digital assets are making things worse. Significant financial withdrawals from the economy were attributed to Binance’s operations by presidential assistant Bayo Onanuga, who specifically singled out the exchange.

The guideline that was just issued comes soon after the CBN refuted a report that said local banks have to freeze the accounts of unregistered cryptocurrency service providers. The fluidity and complexity of regulatory dynamics in Nigeria’s cryptocurrency sector was highlighted by earlier reports that recommended imposing a six-month “Post No Debit (PND) instruction” on cryptocurrency exchanges.