The Central Bank of Nigeria (CBN) has taken a decisive step in its efforts to curb alleged cryptocurrency-related activities within the microfinance sector. Sources familiar with the matter revealed to the Peoples Gazette that the CBN has prohibited select microfinance banks, including Moniepoint, Opay, and Kuda, from opening new accounts and accepting new customers.
According to anonymous sources, the CBN’s action comes amidst concerns of these platforms being utilized for cryptocurrency transactions and potential manipulation of the naira’s value. The move is seen as a preventative measure aimed at addressing money-laundering activities, which have reportedly contributed to the recent depreciation of the naira against the dollar.
The naira’s exchange rate, which stood at N1350 against the dollar as of Monday evening, reflects a concerning regression compared to its recent gains. In early April, the Nigerian currency had traded at N950 against the dollar, signaling stability in the foreign exchange market.
Acknowledging the temporary suspension of new account sign-ups, Moniepoint issued a statement on its platform, apologizing for any inconvenience caused to potential customers. This action underscores the impact of the CBN’s directive on the affected microfinance banks.
The CBN’s actions follow previous interventions in the cryptocurrency space, including the crackdown on Binance in collaboration with the Economic and Financial Crimes Commission (EFCC) earlier this year. The detention of Binance executives Tigran Gambaryan and Nadeem Anjarwalla was linked to allegations of naira manipulation, prompting demands from the Nigerian government for transparency regarding Binance’s top users and their transactions.
As the regulatory landscape continues to evolve, the CBN’s measures reflect its ongoing efforts to safeguard the stability of Nigeria’s financial system amidst emerging challenges in the cryptocurrency sphere.