The Central Bank of Nigeria (CBN) banned cryptocurrency transactions in Nigeria’s banking and financial sector in February 2021.
Individuals and companies interested in cryptocurrencies were able to obtain banking and financial services before February 2021 as long as they followed their financial institution’s Anti Money Laundering (AML)/ Know Your Customer (KYC) policies.
However, since the prohibition, the situation has altered, with both individuals and companies engaging in bitcoin or virtual asset transactions in the country being denied banking and financial services. People turned to peer-to-peer services as a result of this.
As a result, KurePay’s move follows the Central Bank of Nigeria’s recent crackdown on peer-to-peer crypto trading.
KurePay, a cryptocurrency and fiat social payment app founded in Nigeria, has announced that it will limit its operations to over-the-counter (OTC) and crypto consultancy services for Nigerians and Africans in general, even as it considers expanding to other African countries.
KurePay is a three-part payment system that uses an e-wallet, a payment gateway, and a Kure card, all of which are designed to employ blockchain technology to deliver e-commerce and payment solutions.
The CEO of the company has indicated plans to start a US-based company focused on the African market, similar to a number of other disgruntled enterprises that have relocated to friendlier or less unfriendly jurisdictions outside Nigeria.
It’s unclear why Nigeria is clamping down, but it’s a similar move to China’s crypto crackdown after the introduction of the Central Bank Digital Currency (CBDC).
As of 1st November 2021, the CBN upped the ante against crypto traders and recent reports have it that the crackdown is starting to get to people who provide p2p services and customers who trade cryptocurrency as banks have started to freeze accounts of such individuals.
Expressing his contempt, Tega stated that it is lowly and unfair of the CBN to close accounts of its customers who trade crypto. Due to this clampdown, Kurepay, foremost cryptocurrency payment app in Africa, is suspending its operations and activities in Nigeria.
He added that asides from restricting its services to crypto consulting and OTC, Kurepay is planning “to run a US-based company to innovate in a more business-friendly environment.” The CEO believes that such a move see Kurepay operate under lawful jurisdiction without worrying about CBN directives.
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