Central Bank Of Nigeria Bans Moniepoint, Opay, Kuda, Others From Taking New Customers Over Cryptocurrency
The Central Bank of Nigeria (CBN) has imposed restrictions on several microfinance banks, including Moniepoint, Opay, and Kuda, preventing them from opening new accounts and accepting new customers. This action follows allegations that these institutions were involved in activities such as cryptocurrency funneling and manipulation of the naira’s value. Sources familiar with the matter revealed that the CBN implemented the ban to address concerns regarding money laundering, which has contributed to the recent depreciation of the naira against the dollar.
The Nigerian currency, the naira, experienced a significant decline in value, trading at N1350 against the dollar as of Monday evening. This decline marks a regression from the positive trend observed in recent weeks when the naira strengthened to N950 in early April. The CBN’s decision to restrict new account openings is seen as a measure to combat illicit financial activities that have adversely affected the stability of the national currency.
Moniepoint, one of the affected microfinance banks, informed its prospective customers of the temporary suspension of new sign-ups on its platform. This move, although inconvenient for potential clients, aligns with the broader effort to address the underlying issues contributing to the depreciation of the naira. The CBN’s actions reflect a proactive approach to safeguarding the integrity of Nigeria’s financial system and protecting the interests of its citizens.
The depreciation of the naira in February prompted regulatory authorities, including the CBN and the Economic and Financial Crimes Commission (EFCC), to take decisive action against entities suspected of engaging in illicit financial activities. Binance, a prominent cryptocurrency exchange, faced scrutiny and had its executives detained over allegations of naira manipulation. Among those detained were Tigran Gambaryan, a U.S. citizen, and British-Kenyan Nadeem Anjarwalla.
In response to the detention of its executives, Binance faced pressure from the Nigerian government to disclose information about its top 100 users and their transactions. This demand was made as part of negotiations to secure the release of the detained executives and address concerns related to the alleged manipulation of the naira’s value. The incident underscores the challenges associated with regulating cryptocurrency exchanges and combating financial crimes in a rapidly evolving digital landscape.
The regulatory measures taken by the CBN reflect a broader effort to strengthen oversight of the financial sector and mitigate risks associated with illicit financial activities. By imposing restrictions on microfinance banks and scrutinizing cryptocurrency exchanges, authorities aim to foster transparency, integrity, and stability within Nigeria’s financial system. While these actions may cause temporary disruptions, they signal a commitment to addressing systemic vulnerabilities and safeguarding the interests of all stakeholders.
In conclusion, the CBN’s decision to bar certain microfinance banks from opening new accounts and its efforts to address allegations of cryptocurrency-related misconduct demonstrate a proactive stance in combating financial crimes and preserving the stability of the naira. These measures underscore the importance of regulatory vigilance in safeguarding the integrity of Nigeria’s financial system amidst evolving challenges in the digital economy.
Sahara Reporters
