The Reason for the Warning by the Fintech Companies that Customers Should Desist From Crypto Transactions

Digital Financial Institutions including Opay, Palmpay and Moniepoint in a report published by Punch Newspaper, May 4, 2024 has issued a caution to their teeming customers against crypto-currency related transactions on their various platforms. The caution was issued not just against crypto currencies such as Bitcoin but also against other digital coins. Mostly via email messages, the Opay, Paga, and Palmpay issued notice that cryto transactions are highly prohibited, and that defaulters' accounts would be closed down.

The mobile  money operators actually raised the alert because crypto-currency exchanges are against CBN guidelines to Banks and other financial institutions. 

It should be recalled that late last week, CBN ordered a stop to the fintech companies from registering new members. The moratorium against onboarding new customers was not unconnected with weak Know Your Customer (KYC) processes of the digital banks. At about last week too, reports had it that over 1100 digital accounts were frozen by the Economic and Financial Crimes Commission (EFCC) for investigation about issues of money laundering.