Notable Fintech companies operating in Nigeria have recently sent messages to their bank customers warning them against doing banking transactions that involve cryptocurrency P2P.
Peer-to-peer (P2P) in cryptocurrency exchange platforms involves the selling & receiving of digital assets between a willing buyer and a willing seller who execute the transaction without possibly knowing each other physically. The seller releases the asset upon confirmation of the deposit or money paid by the willing buyer who in turn receives the crypto investment asset in his or her crypto wallet certifying that the transaction was successful.
The seller may not have the luxury of not releasing the asset upon confirmation of the payment from the buyer to avert being restricted or blocked by the exchange platform for future transactions. This has given P2P platform some levels of security and the transaction can’t be possible without a bank that the sender uses to send money to the receiver gotten through the P2P platform who releases the asset upon confirmation of receiving the money transfer in his or her business account.
Some financial technology companies are under suspicion by the Central Bank of Nigeria for allowing their customers to use their online banking platform to facilitate cryptocurrency transactions and manipulate the naira against the dollar.
To be on a safe side of the license given to operate banking transactions in Nigeria, the fintech companies have sent notifications to their customers to desist from using their bank accounts to carry out cryptocurrency transactions or risk their accounts close down and report to the appropriate authorities.