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The Central Bank of Nigeria (CBN) has imposed a ban on several microfinance banks, including Moniepoint, Opay, and Kuda, from opening new accounts and accepting new customers. This move comes amid allegations that these financial institutions were being utilized to facilitate cryptocurrency transactions and manipulate the value of the naira.
According to anonymous sources familiar with the matter, the CBN deemed the ban necessary to curb money-laundering activities that have contributed to the recent decline in the naira’s value against the US dollar. As of Monday evening, the naira traded at N1350 per dollar, a significant regression from its steady climb to N950 in early April.
In a message to intending customers on Friday, Moniepoint announced a temporary pause on new sign-ups, citing a “temporary pause” on its platform. “This means that you’ll be unable to open a new account at the moment. We apologize for any inconvenience this may cause,” the message read.
This development follows a crackdown by the CBN and the Economic and Financial Crimes Commission (EFCC) on Binance, a cryptocurrency exchange platform, in February. The authorities detained Binance executives Tigran Gambaryan, a US citizen, and Nadeem Anjarwalla, a British-Kenyan, over allegations of naira manipulation. The Nigerian government demanded that Binance release the names of its top 100 users and their transactions to negotiate the release of the detained executives.
The CBN’s move is seen as a measure to protect the naira and prevent further currency manipulation. However, the ban has raised concerns among customers and stakeholders, who are worried about the impact on their financial activities and the overall economy.