In a move to crack down on possible crypto-related activities, the Central Bank of Nigeria (CBN) has dealt a serious blow to microfinance banks including Moniepoint, Opay, Kuda, and more. The CBN has prohibited these banks from accepting new customers, citing concerns that these platforms were facilitating or engaging in crypto-related activities that could undermine financial stability and integrity. This action comes amidst increasing regulatory pressure on the crypto space in Nigeria, as the government seeks to assert greater control over digital currencies.
As the Central Bank of Nigeria steps up its efforts to tackle money laundering, one of the major factors affecting the value of the naira, it has dealt a hard blow to three microfinance banks, Moniepoint, Opay, and Kuda. With the revelation that these banks were purportedly aiding and abetting cryptocurrency transactions, which can mask money laundering, the CBN’s ban on new accounts is intended to stop the situation from worsening.
Amid these developments, the naira continues to slide against the dollar, now trading at N1350.
After the CBN’s recent decision to ban these banks from accepting new accounts, Moniepoint took to notifying prospective customers of the temporary disruption to its services, acknowledging the disruption this may cause.
This development comes against the backdrop of a turbulent period for the naira, particularly in February, when the currency was on the brink of reaching N2000 per dollar.
“Hello! We’ve temporarily paused new sign-ups on our platform,” Moniepoint wrote in a message on its platform for intending customers on Friday. “This means that you’ll be unable to open a new account at the moment. We apologise for any inconvenience this may cause.”
In the wake of a string of measures taken by the Nigerian government to curb crypto-related activities, Binance has found itself under the regulatory microscope. The Nigerian government’s request for the exchange to provide information on its top 100 users, along with their associated transactions, signifies the intensity with which authorities are approaching the issue, keen to maintain financial stability and integrity.
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