Leading fintech players including Kuda Bank, Moniepoint, OPay, and Palmpay have pressed pause on new account registrations for customers. This decision, reportedly stemming from a directive issued by the Central Bank of Nigeria, has sparked a flurry of speculation and concern among industry observers and users alike.
According to insider sources within one of the affected banks, the move appears to be a response to the Economic and Financial Crimes Commission (EFCC) cracking down on 1,146 bank accounts involved in unauthorized forex transactions. This crackdown, coupled with mounting concerns over cryptocurrency traders exploiting fintech platforms to manipulate the foreign exchange market, has intensified regulatory scrutiny on the sector.
attempt to create new accounts through the impacted fintech apps hit a roadblock, with users encountering difficulties and receiving notifications indicating signup unavailability. Moniepoint took a proactive stance, officially announcing the suspension of new sign-ups through a platform-wide message. Similarly, Palmpay users faced similar hurdles, with the app displaying a message indicating signup unavailability.
Protest Erupts as OPAY Account Users Face Unauthorized Transactions
While the suspension of new account openings has caused jitters among users, there have been no reports of disruptions in other banking services offered by these platforms. However, the lack of official statements from regulatory authorities has left many questions unanswered regarding the motive behind the directive and its potential implications for the fintech ecosystem in Nigeria.
The situation also underscores the ongoing debate surrounding the regulatory oversight of fintech companies compared to traditional commercial banks. Critics argue that commercial banks may enjoy a closer regulatory relationship, potentially influencing regulatory actions against their fintech counterparts.
As stakeholders await clarity from regulatory authorities, the temporary halt on new account openings serves as a reminder of the delicate balance between innovation and regulation in Nigeria’s rapidly evolving financial landscape. Stay tuned for further updates as this story unfolds.
Post Disclaimer
The opinions, beliefs and viewpoints expressed by the author and forum participants on this website do not necessarily reflect the opinions, beliefs and viewpoints of Anaedo Online or official policies of the Anaedo Online.