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BD Insider: Nigeria’s crypto controversy continue

In this letter, we explore; EFCC freezes crypto funds on Bybit and KuCoin, CBN issues 30-day deadline on PoS transaction tracking, Kenya’s satellite internet dispute heads to court.

In this letter, we explore:

EFCC freezes crypto funds on Bybit and KuCoin
CBN issues 30-day deadline on PoS transaction tracking
Kenya’s satellite internet dispute heads to court

We also curated updates on startup funding in Africa, weekend reads, and several opportunities.

The big three!

EFCC freezes crypto funds on Bybit and KuCoin

Source: Bitcoin.com News

Two weeks ago, when the Nigerian Securities and Exchange Commission (SEC) issued licences to two crypto exchanges, it seemed like a potential green light for crypto in the country, signalling that authorities might be softening their stance. But that’s not quite the full story.

The Economic and Financial Crimes Commission (EFCC) has since obtained a court order to freeze ₦548.6 million ($332,000) in bank accounts belonging to suspected crypto users on platforms like Bybit and KuCoin.

Why the freeze? The EFCC claims these platforms facilitated activities that contributed to the naira’s devaluation. The commission accused them of enabling users to operate in secrecy by bypassing Nigeria’s anti-money laundering regulations. They've also written to banks requesting hard copies of the details of P2P traders' accounts.

Context: Despite the SEC’s move to issue licences, the Central Bank of Nigeria still hasn't openly embraced cryptocurrency. The government is still also locked in a legal battle with Binance over money laundering allegations.

Zoom out: Since the SEC’s announcement, up to 50 cryptocurrency exchanges have applied for operational licences in Nigeria.

CBN issues 30-day deadline on PoS transaction tracking

Deadlines are piling up in Nigeria's Point of Sale (PoS) sector. Following the expiration of the deadline for PoS operators to register with the Corporate Affairs Commission (CAC), the Central Bank of Nigeria (CBN) has issued a new one—this time for Payment Service Providers (PSPs).

The CBN has given PSPs 30 days to comply with regulations requiring all PoS transactions to be processed through certified Payment Terminal Service Aggregators (PTSAs). This move aims to improve oversight of electronic payments by ensuring that only authorised and regulated entities handle PoS transactions.

Zoom in: NIBSS and Unified Payment Services Limited have been licensed as PTSAs, responsible for ensuring that PoS machines comply with CBN guidelines. By involving multiple PTSAs, the CBN hopes to increase competition and improve service quality in the e-payments ecosystem.

To boost security and transparency, the CBN also requires PSPs and PTSAs to submit monthly reports detailing their operations. This will help the CBN track compliance and address potential risks.

Zoom out: The CAC has warned fintechs and PoS operators to shut down unregistered PoS businesses following the expiration of the 60-day deadline.

Kenya’s satellite internet dispute heads to court

Source: SpaceinAfrica

In a twist of irony, the hunter has become the hunted in Kenya’s battle for internet dominance. Safaricom, the telecommunications giant that recently reported Starlink’s entry to the Communications Authority (CA) for regulatory scrutiny, is now in the hot seat. A local advocacy group, Kituo cha Sheria, has filed a lawsuit against Safaricom, alongside the CA and the Kenya Competition Authority, accusing them of unfair practices linked to the controversial arrival of Starlink.

Kituo cha Sheria believes that Safaricom's concerns are motivated by its market dominance and fear of competition. The group argues that Safaricom's demands are unconstitutional and limit Kenyans' access to affordable internet services.

Context: In less than a year, Starlink’s subscriber base skyrocketed from 405 in July 2023 to over 4,850 by March 2024. With its offers of competitive pricing and wider coverage, particularly in remote areas, Starlink is piling pressure on traditional ISPs, who charge much higher rates.

The outcome of this legal battle could significantly impact Kenya's internet landscape and regulatory framework.

💰 State of Funding in Africa

Here’s a roundup of African startups that secured funding last week:

Egypt’s Fintech Paymob has raised $22 million in Series B funding led by EBRD Venture Capital. Endeavor Catalyst participated, along with existing investors PayPal Ventures, BII, FMO, A15, Nclude, and Helios Digital Ventures.
South African calling app Talk360 has raised $1.4 million in a pre-series A round led by HAVAIC.
Nigerian health tech company Field has received an $11 million grant from the Bill & Melinda Gates Foundation.