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Nigerian Central Bank Freezes Fintech Firms Bank Bank Accounts, and Charges Them With Violations Of Forex Regulations – Bitcoin Regulation News

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The Central Bank of Nigeria (CBN) reportedly froze bank accounts belonging to four fintech companies for up to 180 days after a Federal High Court in Abuja granted an “ex parte motion”. After Micheal Kaase, a Nigerian leader, filed the ex parte motion on behalf of CBN Governor Godwin Emefiele, the request was granted.

Accounts are frozen to permit further investigation

According to a ReportThis temporary bank account freeze will allow the CBN and the CBN to launch new investigations into the activities these four companies. Numerous Nigerian media outlets identified these companies as Rise Vest Technologies Limited. Bamboo Systems Technology Limited. Chaka Technologies Limited. Trove Technologies Limited.

The report suggests that the CBN took the ex parte motion after preliminary investigations revealed that the four companies were operating unlicensed assets management businesses. The central bank also accuses financial technology firms of using currency from the Nigerian foreign market to purchase foreign bonds / stocks, in violation of the CBN circular dated July 1, 2015.

Nigeria has faced foreign exchange shortages in recent years. This has led to a continued depreciation in the naira. CBN has put restrictions or limits on how much foreign currency ordinary Nigerians can withdraw to banks as a response to the falling value of the Nigerian naira.

Imperturbable FinTech companies

CBN has also prevented cryptocurrency companies accessing the country’s financial system. Recently, sales of currency to exchange bureau operators were also stopped. Despite these CBN interventions however, the naira continues losing ground against major currencies. The parallel market naira rate against the US Dollar is 1: 515 at the time of writing. The official rate, however, is unchanged at 1 to 411.

While the CBN case was being presented against the financial tech companies, a Nigerian prosecution told a Federal High Court judge, that foreign exchange deals made with the four companies “made Nigeria’s Naira weaker than the US dollar, thus the need to block their accounts from 180 days.”

There is however another. ReportRise Vest Technologies Limited CEO Quotes It is reassuringUsers will be assured that their company’s business activities will continue as before and that the issue will be addressed with regulators. Bamboo Systems also agrees. RecountTwitter users were informed by the company that it was reviewing it by its “legal- and government relations” teams.

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