On April 30, 2024, a social media influencer and a blogger shared a picture of the Central Bank of Nigeria (CBN) on Instagram with the headline “Customers panic as CBN bans Opay, Palmpay, Kuda, and others over cryptocurrency involvement.”
The post was shared across social media platforms after the announcement by the CBN, which prohibited all mobile money operators, including fintech firms, from onboarding new customers.
As of the time of compiling this report, the post has garnered 74,014 likes and 4,431 comments.
Screenshot of the Instagram post
Claim: CBN bans Opay, Palmpay, and others over cryptocurrency involvement.
Verification
The CDD War Room found that on December 4, 2023, the CBN enforced a mandatory, more stringent Know Your Customer (KYC) measures, that were set to begin in April 2024. These measures necessitate that all customers provide either their bank verification number (BVN) or a national identification number (NIN) for account or wallet opening. The directive coincided with the court order obtained by the Economic and Financial Crimes Commission (EFCC) to freeze at least 1,146 bank accounts owned by various individuals and companies allegedly involved in illegal foreign exchange transactions.
In addition, the CDD War Room found credible media sources reporting the Nigerian government has blocked Binance and other crypto firms online platforms to avert what it considers continuous manipulation of the forex market and illicit movement of funds. The government decided to take action against Binance and other cryptocurrency firms following reports that currency speculators and money launderers were using them to perpetrate criminal activities. Authorities believe the ‘criminal activities’ on those platforms contributed significantly to the weakening of the Naira. Apart from Binance, other platforms such as Forextime, OctaFX, Crypto, FXTM, Coinbase, and Kraken, among others, were equally blocked.
CDD War Room found out that the directive was connected to an ongoing evaluation of the fintech companies ‘Know-Your-Customer (KYC) procedures. These companies have been under investigation in recent months due to worries about money laundering and terrorism financing.
VERDICT: Misleading
While it is true that the CBN issued a directive that prohibits these four fintech firms from onboarding new customers, it is misleading to claim that they have been banned.
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