Nigerian Central Bank Clamps Down on Microfinance Banks Over Crypto Transactions

-

 






The Central Bank of Nigeria (CBN) has imposed restrictions on several prominent microfinance banks, including Moniepoint, Opay, and Kuda, prohibiting them from acquiring new customers or opening new accounts. This move comes amid allegations that these institutions facilitated cryptocurrency transactions which are thought to have contributed to recent fluctuations in the naira's value.


The restrictions are part of a broader effort by the CBN to stabilize the national currency and prevent money laundering. The naira, which traded at N950 against the dollar in early April, experienced a sharp decline, hitting N1350 to the dollar by Monday evening. This volatility has raised concerns about the potential impacts on the economy and the effectiveness of existing regulatory frameworks.


The decision to ban these financial institutions from enrolling new customers was communicated privately to Peoples Gazette by sources who preferred to remain anonymous due to the sensitivity of the information. The same sources indicated that this measure is critical to curtailing the misuse of the financial system for activities that could undermine the economic stability of Nigeria.


On its platform, Moniepoint issued a notification to potential clients last Friday, stating, "Hello! We’ve temporarily paused new sign-ups on our platform. This means that you’ll be unable to open a new account at the moment. We apologise for any inconvenience this may cause."


Earlier this year, the CBN, in collaboration with the Economic and Financial Crimes Commission (EFCC), took a hard stance against the cryptocurrency exchange Binance, leading to the detention of its executives. These actions highlight the government's increased scrutiny of cryptocurrency activities, especially their role in currency manipulation.


The directive not only affects these financial institutions but also sends a strong message to the crypto community and investors about the government's approach to unregulated financial activities. As Nigeria navigates through these economic changes, the impact on both the institutions involved and the general public remains a focal point of interest and concern for market watchers and policy analysts.

Comments

Post a Comment

Popular posts from this blog

Title: Nepotism on the Bench: The Impact of Political Favoritism in Nigeria's Judiciary

-
Image
  In Nigeria, the judiciary stands as a pillar of democracy, tasked with upholding the rule of law and ensuring justice for all. However, recent events have cast a shadow over the integrity of the judiciary, as political favoritism and nepotism have infiltrated the process of judicial appointments. One glaring example of this troubling trend emerged with the recent list of appointments to the appeal court, where the wife of Nyesom Wike, the Minister of Federal Capital Territory, secured a position. This appointment raised eyebrows and sparked widespread debate about the fairness and transparency of the selection process. Nepotism, the practice of favoring relatives or friends in appointments, promotions, or business dealings, has long plagued Nigerian society. In the context of the judiciary, nepotism undermines the principles of meritocracy and impartiality, eroding public trust in the legal system. The appointment of family members of high-ranking politicians to judicial positions no
Read more

From Rent to Own: Why Saving Early is Key to Buying a House in Nigeria

-
Image
   In Nigeria, the dream of owning a home can seem out of reach for many, especially those with low incomes. However, with strategic planning and a commitment to saving early, this dream can become a reality. This article explores the importance of early savings, the challenges faced by low-income earners, and how government policies can assist in the journey from renting to owning a home. The Nigerian Housing Market: An Overview Nigeria’s housing market presents unique challenges, particularly for low-income earners. The high cost of housing, coupled with inflation and economic instability, makes it difficult for many to save enough for a down payment. Yet, owning a home remains a significant goal for most Nigerians, offering stability and a sense of achievement. Why Save Early? 1. Compounding Interest: The earlier you start saving, the more time your money has to grow through compound interest. Even small, regular contributions can accumulate significantly over time, easing the finan
Read more

Former Ikwerre LG Chairman Samuel Nwanosike Admits to Violating Hotel Approval, Begs Sim Fubara Appointee

-
Image
   Chief Samuel Nwanosike, the former Chairman of Ikwerre Local Government Area in Rivers State, has publicly admitted to contravening approval regulations for his hotel project in Port Harcourt. Known for his staunch criticisms of the current governor, Sim Fubara, Chief Nwanosike has made headlines again, this time for pleading for leniency from a Fubara appointee in a viral video. Chief Nwanosike has a history of defying authorities. During his tenure as chairman, he frequently clashed with Governor Fubara, whom he disparagingly referred to as a "small boy" and someone "who doesn't know anything." His defiance extended to his refusal to vacate his position after the expiration of his term, creating significant tension within the local government administration. Accusations have surfaced that Chief Nwanosike diverted funds intended for local government projects to purchase land and develop a hotel in Port Harcourt. This misuse of public funds has been a point o
Read more