Opay, a digital payment platform widely used in Nigeria, has recently issued a stern warning to its customers. In a notice sent through its in-app messaging system on Friday, May 3, 2024, the company made it clear: engaging in cryptocurrency trading or virtual currency transactions on its platform is strictly prohibited. The consequence? Permanent account closure and sharing of account details with the authorities.

Opay warns Customers About Three Types of Transactions on Its Platform

The firm didn’t stop there. It also explicitly forbade its users from participating in foreign currency and money laundering activities within its ecosystem. This crackdown on certain financial activities on Opay’s platform is attributed to heightened regulatory scrutiny by the Central Bank of Nigeria (CBN) over fintech companies operating in the country.

The CBN’s Directive and Opay’s Response

According to reports, the CBN has been intensifying its oversight of fintech firms, prompting Opay and other key players like Moniepoint, Palmpay, and Kuda Bank to halt the opening of new customer accounts.

Opay, aligning itself with the CBN’s directive, wasted no time in implementing strict measures against cryptocurrency and virtual currency trading. Accounts found violating these regulations face closure and regulatory scrutiny.

National Security Concerns Surrounding Cryptocurrency

In a notable turn, Nigeria’s National Security Adviser (NSA) has reportedly designated cryptocurrency trading as a national security challenge. This move has raised eyebrows and speculation among analysts, who suggest that tighter regulations may be on the horizon, potentially including a ban on peer-to-peer crypto trading.

The NSA’s classification has further constricted the onboarding of new customers by the aforementioned financial technology firms.

Opay’s Commitment to Customer Security

Despite the regulatory storm brewing, Opay has taken steps to reassure its customers about the safety of their funds. In a statement released via its X account on Tuesday, April 30, 2024, the company affirmed its dedication to combating illegal financial activities within the country.

However, amidst these assurances, Nigerians have taken to social media platforms to express a range of sentiments regarding the CBN’s directives, particularly the mandate to link bank accounts with Bank Verification Numbers (BVNs) and National Identity Numbers (NINs) for all banking transactions.

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