Forex Trading, Crypto Trading Illegal as CBN Freezes Invest Bamboo, RiseVest Accounts, 3 Others

DISCLAIMER
Guest Editor Posts and Posts from unverified Authors are not censored. For copyright infringement claims, kindly contact us via email: dmca@360naijahits.com

Forex Trading, Crypto Trading Illegal as CBN Freezes Invest Bamboo, RiseVest Accounts, 3 Others

DISCLAIMER
Guest Editor Posts and Posts from unverified Authors are not censored. For copyright infringement claims, kindly contact us via email: dmca@360naijahits.com




The federal high court sitting in Abuja granted the request of the Central Bank of Nigeria (CBN) to freeze accounts belonging to some technology trading platforms offering local and foreign stocks.

The judge, granted the prayers of the apex bank to freeze the accounts of RiseVest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited, and Trove Technologies Limited for 180 days.



Join Our WhatsApp TV

Invest bamboo

The accounts will remain blocked for 180 days, The Cable reported Tuesday.

The platforms offer Nigerians access to stocks, bonds and other securities in both local and international markets, and have in recent years grown in popularity in the Nigerian fintech space, especially amongst young people.

You May Also Like  Netflix Prepares to Launch Cheaper Mobile Only Plan in Nigeria, Africa

In April, the Securities and Exchange Commission said investment services offered by the firms were illegal.

The CBN now accuses the companies of engaging in “illicit forex transactions”

“It is evident that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited and Trove Technologies Limited are complicit in operating without license as asset management companies and utilising FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of CBN’s directive.”

This is not the first time the apex bank is clamping down on major fintech platforms offering foreign stocks to its customers.

In February 2021, the CBN directed banks and other financial institutions to close any accounts dealing in cryptocurrency or facilitating payment for cryptocurrency exchange, with immediate effect.

You May Also Like  WhatsApp: Two New Features Rolling Out – Send and Receive Money, Disappearing Messages

What Sin Did These Fintechs Commit?

CBN claimed the Fintechs committed the following unforgivable sins.

RISEVEST TECHNOLOGIES LIMITED – NO LICENCE/ALLEGED CRYPTO TRADING

The CBN accused Risevest of engaging in cryptocurrency trading which contravened it’s circular referenced BSD/DIRUPUB/LAB/014/001, dated February 5, 2021.

BAMBOO SYSTEMS TECHNOLOGY LIMITED – NO LICENCE

The apex bank said Bamboo operates an online app for trading in stocks, exchange-traded fund and derivatives listed in major US exchanges.

CHAKA TECHNOLOGIES LIMITED / NO LICENCE AND ALLEGED ILLEGAL FOREX TRANSACTION

CBN accused Chaka of engaging in the purchase of forex from illegal operators for trading in naira and dollar securities.

You May Also Like  Jumia Black Friday, N100 Sales – Don’t Miss Out

TROVE TECHNOLOGIES LIMITED – NO LICENCE/ ILLEGAL FX TRANSACTIONS 

CBN accused Trove of engaging in cryptocurrency trading as well as operating mobile and digital investment app for local and foreign securities without approval.

Source: The Cable

 





Join Our WhatsApp TV






The federal high court sitting in Abuja granted the request of the Central Bank of Nigeria (CBN) to freeze accounts belonging to some technology trading platforms offering local and foreign stocks.

The judge, granted the prayers of the apex bank to freeze the accounts of RiseVest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited, and Trove Technologies Limited for 180 days.



Join Our WhatsApp TV

Invest bamboo

The accounts will remain blocked for 180 days, The Cable reported Tuesday.

The platforms offer Nigerians access to stocks, bonds and other securities in both local and international markets, and have in recent years grown in popularity in the Nigerian fintech space, especially amongst young people.

You May Also Like  WhatsApp iOS to Android Chat Migration tool Gradually Rolling Out

In April, the Securities and Exchange Commission said investment services offered by the firms were illegal.

The CBN now accuses the companies of engaging in “illicit forex transactions”

“It is evident that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited and Trove Technologies Limited are complicit in operating without license as asset management companies and utilising FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of CBN’s directive.”

This is not the first time the apex bank is clamping down on major fintech platforms offering foreign stocks to its customers.

In February 2021, the CBN directed banks and other financial institutions to close any accounts dealing in cryptocurrency or facilitating payment for cryptocurrency exchange, with immediate effect.

You May Also Like  Opera Partners With MTN to Introduce New Affordable Data Plans

What Sin Did These Fintechs Commit?

CBN claimed the Fintechs committed the following unforgivable sins.

RISEVEST TECHNOLOGIES LIMITED – NO LICENCE/ALLEGED CRYPTO TRADING

The CBN accused Risevest of engaging in cryptocurrency trading which contravened it’s circular referenced BSD/DIRUPUB/LAB/014/001, dated February 5, 2021.

BAMBOO SYSTEMS TECHNOLOGY LIMITED – NO LICENCE

The apex bank said Bamboo operates an online app for trading in stocks, exchange-traded fund and derivatives listed in major US exchanges.

CHAKA TECHNOLOGIES LIMITED / NO LICENCE AND ALLEGED ILLEGAL FOREX TRANSACTION

CBN accused Chaka of engaging in the purchase of forex from illegal operators for trading in naira and dollar securities.

You May Also Like  The New OPPO A92 with FHD+ Display, Quad Cameras, 5000mAh Battery Launched

TROVE TECHNOLOGIES LIMITED – NO LICENCE/ ILLEGAL FX TRANSACTIONS 

CBN accused Trove of engaging in cryptocurrency trading as well as operating mobile and digital investment app for local and foreign securities without approval.

Source: The Cable

 





Join Our WhatsApp TV





Share Post:

Related Posts