The Central Bank of Nigeria (CBN) has lifted a recent suspension on OPay, Moniepoint, Kuda, Palmpay, and Paga, allowing these fintech companies to start onboarding new customers again.
According to local reports, OPay and Kuda confirmed the development in separate messages to their customers on June 3 2024, even though the Central Bank has not given a statement.
“We are thrilled to announce that the Central Bank of Nigeria [cbn] has given OPay the thumbs up to resume onboarding new users. This milestone highlights our dedication to following the rules, keeping your information safe and secure, and preventing any shady activities,” OPay said on its X handle.
In light of the concerns expressed by the apex bank that led to the ban, OPay emphasized its strict adherence to the approved KYC verification processes. The company urged its customers to ensure that all accounts undergo the proper verification process and that all requirements are fully met.
Kuda also shared the news with its customers and followers on social media:
“As you probably already know, we’ve been working with the CBN to meet recent regulatory requirements by putting more account controls in place.
“Based on the work we’ve done, we’ll resume signing up new customers this week. Please, note that you’ll need your BVN, NIN, and your proof of address (followed by address verification) to open a Tier 3 account.”
This decision comes approximately five weeks after the apex bank halted the fintechs from onboarding new customers due to concerns that their accounts were being utilized for illicit foreign exchange transactions.
At the same time, the bank asked major fintechs including Moniepoint, Paga, and PalmPay to block the accounts of customers dealing in cryptocurrency and report those transactions to law enforcement, and also not to onboard any accounts participating in crypto trades.
Exchanges operating in the country have been under scrutiny as authorities believe that crypto platforms facilitate speculation and potential manipulation of exchange rates. In late February 2024, the government ordered several services, including Coinbase, Quidax, and Binance, to stop operations.
REGULATION | Crypto Exchanges to Stop StableCoin Sales in Nigeria Amid Apparent Crackdown
“There was a meeting of crypto founders on Tuesday [February 27 2024] morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told a local… pic.twitter.com/iiYBuYrpOu
— BitKE (@BitcoinKE) February 29, 2024
It was also revealed that the government was planning a new crypto ban after the country’s National Security Adviser (NSA) classified crypto trading as a national security issue.
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