The Central Bank of Nigeria (CBN) has recently suspended the provision of the bank validation number (BVN) service to all fintech and third-party partners. The decision means non-banks entities include crypto startups “have lost one of the most comprehensive means of identity verification in the country.”

New Identification System

Before the latest decision, the CBN accepted the use of the BVN alongside any other acceptable identity documents for KYC purposes. According to the apex bank, this service helped to “check risk and determine whether or not there is an element of money laundering, fraud and other corruption-related activities.”

However, as one local media report explains, the central bank’s sudden decision may be linked to the Federal government’s determination to change Nigeria’s identification system. The report says:

Over the last few months, the Federal government has been changing the unique means of…

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Source: https://news.bitcoin.com/central-bank-of-nigeria-blocks-fintech-startups-from-accessing-kyc-service-decision-described-as-an-attack-on-all-fintechs/