Yahya 
In response to the recent financial regulation challenge, aimed at boosting Know Your Customer (KYC) compliance, the Central Bank of Nigeria (CBN) has forced four prominent fintech firms—OPay, Kuda Bank, Moniepoint, and PalmPay—to stop new customers’ onboarding. This toughened rule comes at a time when the nation is busy creating KYC processes for the crypto-based financial sector as well.
CBN Directs Onboarding Freeze Amid Tightening KYC Regulations
According to the news portal TechCabal, concerns among financial regulators have risen as Bitcoin users use fintech platforms to cause financial instability in the forex market. A source associated with the case stated, “The CBN feels like the crypto traders were borrowing money from the POS/ATM systems (fintech platforms) to distort the FX market.”
This decision follows swift action by the Economic and Financial Crimes Commission (EFCC), which recently blocked 1,146 bank accounts using the forex platform against its purpose. Interestingly, however, only 10% of the blocked accounts are from fintech firms here, as compared to the rest, which are mostly accounts belonging to commercial banks.
Despite the planned halt on new client onboarding, the tech-savvy alternative financiers’ existing customers continue to deposit and transfer their funds without any delays, leveraging the emerging technology. One of the companies that introduced this announcement stated, “Our new account signups are temporarily halted while we fix some bugs, and we simply did it as an apology.”.
Emomotimi Agama’s SEC Appointment Signals Regulatory Shift in Nigerian Crypto Space
To the contrary, in a parallel development that might also support the cause of those who are in favor of a change in Nigeria’s cryptocurrency regulations, the appointment of the new SEC chief, Mrs. Emomotimi Agama, has gained quite a bit of success among cryptocurrency supporters and those in the industry.
Emomotimi Agama’s appointment is seen as a counteractive method for increasing regulatory supervision in the cryptosphere, which represents investor confidence and economic development. Various crypto leaders in Nigeria, such as Luz from Flincap and Uwakwe from SaBi Exchange, have positively embraced the new SEC head, expressing hope for positive engagement with startups and streamlined licensing processes for crypto platforms.
Amidst Nigeria’s evolving fintech services and regulatory governance, these current examples reveal the importance of creating the right mix between promoting financial inclusion and preventing illicit practices in the digital finance space.