The Central Bank of Nigeria (CBN) has issued a directive barring certain microfinance banks, including Moniepoint, Opay, and Kuda, from opening new accounts and accepting new customers.
This action comes amidst allegations that these platforms were being exploited to facilitate cryptocurrency transactions and manipulate the value of the naira.
According to sources familiar with the matter, the CBN implemented the ban as a measure to combat money laundering activities that have adversely affected the naira’s value against the dollar. The recent depreciation of the naira has prompted concerns, with the currency trading at N1350 against the dollar as of Monday evening.
In response to the directive, Moniepoint notified its users of the temporary suspension of new sign-ups on its platform. The message conveyed apologies for any inconvenience caused and indicated that new account openings were currently unavailable.
This move by the CBN follows previous efforts to address concerns regarding the stability of the naira. In February, amid significant depreciation, the CBN collaborated with the Economic and Financial Crimes Commission (EFCC) to investigate Binance, resulting in the detention of its executives.
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The government’s actions included demands for Binance to disclose information about its top 100 users and their transactions as part of negotiations for the release of the detained executives. This crackdown underscored the authorities’ determination to combat activities perceived to undermine the integrity of the naira.
In recent months, the Nigerian government has intensified efforts to regulate cryptocurrency transactions and mitigate associated risks. Concerns over the potential for cryptocurrency activities to impact the stability of traditional financial systems have prompted regulatory interventions by the CBN.
The ban on new account openings for select microfinance banks reflects the government’s commitment to maintaining the integrity of the nation’s currency and financial system. By restricting access to platforms allegedly involved in cryptocurrency-related activities, the CBN aims to safeguard the naira’s value and prevent illicit financial practices.
While the ban may inconvenience some users seeking to open new accounts, it underscores the regulatory measures necessary to address emerging challenges in the financial sector. The CBN’s proactive stance stresses the importance of robust oversight to preserve financial stability and protect the interests of all stakeholders.