THELOGICALINDIAN - The Central Coffer of Nigeria CBN has afresh abeyant the accouterment of the coffer validation cardinal BVN account to all fintech and thirdparty ally The accommodation agency nonbanks entities accommodate crypto startups accept absent one of the best absolute agency of character analysis in the country
New Identification System
Before the latest decision, the CBN accustomed the use of the BVN alongside any added adequate character abstracts for KYC purposes. According to the acme bank, this account helped to “check accident and actuate whether or not there is an aspect of money laundering, artifice and added corruption-related activities.”
However, as one bounded media report explains, the axial bank’s abrupt accommodation may be affiliated to the Federal government’s assurance to change Nigeria’s identification system. The address says:
Nevertheless, the address still warns that the abatement of the BVN account could potentially “increase the amount of onboarding customers.”
Following letters of the abeyance of the BVN service, Bitcoin.com News approved the angle of some players in Nigeria’s crypto industry. Most of the players accede the abeyance is not accurately targeted at the crypto industry. However, some are determined the move is aloof a assiduity of CBN behavior that seek to asphyxiate addition and to block adolescent bodies from accommodating in the economy.
Nathaniel Luz, a cryptocurrency anticipation leader, characterizes the CBN’s latest accommodation as a affray amid “old and new money.” He adds that the abeyance of the BVN account shows that the CBN continues to use the aforementioned playbook to annul the Nigerian youth. In a post on Facebook, Luz wrote:
An Attack on Fintechs
In the meantime, addition crypto amplitude leader, Chiagozie Iwu, a CEO of a bounded crypto exchange, bidding abruptness at the CBN’s accommodation to append the use of the BVN account for verification. He said while crypto and fintech start-ups have, with the aid of the BVN service, been aggravating to accomplish the amplitude (fintech and crypto space) cleaner, the abeyance of the account removes the adeptness to do the KYC on users. Iwu offers his thoughts on why the CBN fabricated the decision:
“It is acceptable actual accessible that they aloof attractive for every way of advancing fintechs (both crypto and non-crypto).”
Iwu suggests that because some fintech start-ups like Flutterwave now handle “volumes which banks can alone dream of”, the CBN is now advancing to the aid of banks via the abeyance of the BVN service.
Meanwhile, at the time of writing, the CBN had still not appear its affidavit for the abeyance of the BVN service. Bitcoin.com News will amend readers already the CBN explains the affidavit for the suspension.
What are your thoughts on the CBN’s accommodation to append the BVN service? Tell us what you anticipate in the comments area below.
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