By Karen James
In a statement released on Friday, the fintech firm OPay confirmed that it would be closing accounts involved in cryptocurrency trading in compliance with a directive from the Central Bank of Nigeria (CBN). This announcement follows the recent CBN instruction to financial technology companies (Fintechs) to temporarily halt the onboarding of new customers.
Several other fintech companies have already confirmed their compliance with the CBN directive on April 30. OPay’s statement emphasised their commitment to following these regulations, stating, “Any account engaging in such activities will be closed, and customer information will be shared with regulatory authorities.”
Advertisement 
The CBN’s move to restrict cryptocurrency trading has generated significant controversy in Nigeria. The central bank’s directive aligns with a federal high court ruling on April 24, which granted the Economic and Financial Crimes Commission (EFCC) an interim order to freeze over 1,146 accounts belonging to individuals and companies involved in “unauthorised foreign exchange” transactions.
An index analysis conducted by TheCable revealed that the affected accounts were predominantly operated by commercial banks, accounting for 90 percent, while fintechs handled the remaining 10 percent. The freezing of these accounts has caused concern among individuals and businesses relying on cryptocurrency transactions for various purposes, including remittances and international transactions.
As OPay closes its crypto trading accounts, it is expected that other fintech firms will follow suit. The impact of these closures on customers who engage in cryptocurrency and virtual currency trading remains to be seen. It is likely that individuals and businesses will seek alternative platforms to continue their cryptocurrency-related activities as the regulatory landscape evolves.
The CBN’s decision to tighten regulations on cryptocurrency trading is aimed at combating illegal financial activities and ensuring the stability of Nigeria’s financial system. However, it has also raised questions about the potential stifling of innovation in the country’s fintech sector, which has experienced significant growth in recent years.
