CBN’s regulation on P2P crypto transactions forces startup to quit Nigeria: Report

*Due to this recent clampdown, Africa’s foremost social payment app for cryptocurrency and fiat is announcing the suspension of business operations in Nigeria, says Abikure Tega, CEO of KurePay

Isola Moses | ConsumerConnect

Following the sustained current crackdown on cryptocurrency entities in the economy, KurePay, a Nigerian startup behind the social payment app for crypto and fiat, has said the Central Bank of Nigeria’s (CBN) relentless pressure has forced it to suspend operations in the country.

ConsumerConnect reports the firm operates a cryptocurrency card that is designed to enable investors to spend selected top cryptocurrencies at highly competitive rates.

KurePay’s suspension of operations  in Nigeria is set to commence at the start of the first quarter of 2022, according to  Cryptoassetbuyer report.

It was gathered that the firm, which app harnesses blockchain technology, by that time early next year, it will begin to restrict its business to Over-The-Counter (OTC) and crypto consulting services.

Speaking on the crypto startup’s plan to quit the West African country, Mr. Abikure Tega,  Chief Executive Officer (CEO) of KurePay, reportedly lamented what he calls “a horrible year for cryptocurrency adoption and expansion in Nigeria.”

This year, Tega stated, has been quite horrible for cryptocurrency adoption and expansion in Nigeria, as CBN continues to take drastic measures to slow down and frustrate Nigeria’s growing ability to participate in what has been the fastest-growing emerging industry in the world.

According to KurePay CEO, the CBN denied crypto companies access to the banking ecosystem, this resulted in the closure of many cryptocurrency businesses.

He also remarked that the same ‘blockade’ has compelled other companies to reduce their operations to skeletal flow using a P2P system.

The Central Bank’s February 5, 2021, directive had forced KurePay to switch to an agency network model which enables customers to transact directly with each other, Tega was quoted as saying.

Current crackdown on P2P platforms or services

Report has also indicated since the beginning of November 2021, the Bankers’ Bank has upped the ante against cryptocurrency traders in Nigeria, and is now targeting entities and individuals that provide P2P platforms or services to customers who buy and sell crypto.

ConsumerConnect had reported that the CBN’s renewed clampdown has seen some Deposit Money Banks (DMBs) arbitrarily freeze bank accounts of cetain group and individuals suspected of trading cryptocurrencies in the Nigerian economy.

Accordingly, KurePay noted that such targeting of platforms that enable P2P transactions proved to be the final straw that broke the proverbial carmel’s back on cryptoccurency operations in the country.

Tega further explained that the recent “show of lowliness” from CBN in its recent closure of bank accounts in Nigeria in connection with crypto transactions affecting most of KurePay agent partners in the name of regulation, is “unfair and frustrating”.

“Due to this recent clampdown, which we find difficult to understand, considering that Nigeria is not a lawless country, KurePay, Africa’s foremost social payment app for cryptocurrency & fiat — is announcing the suspension of business operations in Nigeria,” Tega said.

Besides restricting its business to OTC and crypto consulting services, KurePay CEO said that the firm is planning “to operate a US-based company in order to innovate in a more business-friendly environment.”

He contended that such a move enables KurePay to operate lawfully and without worrying about CBN directives on crypto operations.

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