Central Bank of Kenya: Flutterwave and Chipper Cash work illegally
The Central bank of Kenya has accused two of Africa's leading fintech companies of illegal activities in this East African country.
Two fintech companies friendly to digital currency, Flutterwave and Chipper Cash, are reportedly operating without a license, even though the former disputes charges of using more than $50 million to launder.
The governor of the Central Bank of Kenya (CBK), Patrick Nyuguna, said that these companies had not received the necessary licenses.
"Flutterwave is not licensed to operate as a money transfer provider or, for that matter, as a payment service provider in Kenya. They do not have a license to operate, and therefore they should not work. The same can be said about Chipper," the governor said, according to local media.
Flutterwave and Chipper Cash are the two largest fintechs in Africa. The latter was founded in 2018 and specializes in cross-border payments through a mobile application. It also allows users to buy and sell digital currencies. Last November, it raised $250 million at a $2 billion valuation in a Series C funding round led by FTX, the exchange led by the controversial Sam Bankman-Freed.
Flutterwave raised $250 million in February this year at a valuation of $3 billion, making it the most valuable startup in Africa. He also got into digital assets, partnering with Binance to offer a gateway for fiat and crypto assets. However, unlike his peer, Flutterwave already had problems with regulatory authorities, as he was prosecuted in Kenya for allegedly facilitating the laundering of at least $52 million.
Although Chipper Cash did not respond to CBK's allegations of illegal activity, Flutterwave shifted the blame to the central bank.
According to Kenya's Business Daily, Flutterwave claims to have applied for a CBK license back in 2019.
"In 2019, as our business grew, Flutterwave applied for a payment service provider license. We are constantly interacting with the Central Bank of Kenya to ensure that all requirements are met, and we look forward to receiving our license," the statement said.
https://coin-signal.com/cryptonews/central-bank-of-kenya-flutterwave-and-chipper-cash-work-illegally/
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