Bitcoin surged to a fresh record high of more than $63,000 today, amidst the unbecoming crypto regulations and other FinTech poised regulations in the country.
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The price of bitcoin climbed as high as $63,236, according to data from Coin Metrics, before dropping to around $62,877. It was last up about 5% in the last 24 hours. Ethereum Blockchain’s cryptocurrency Ether, the second-largest coin by market capitalization after bitcoin, also set a fresh record, climbing to $2,230.
In the past few days, the Central Bank of Nigeria has reportedly suspended the provision of the BVN validation service to all fintech, third-party partners and non-banks in the country.
According to an email notification sent by Paystack, the new directive affects every non-bank that offers BVN validation services in the country including crypto-focused service providers. Other sectors include startups operating in the payment, saving, trading and loans.
According to CBN, BVN helps check risk and determine whether or not there is an element of money laundering, fraud and other corruption-related activities.
The BVN verification method is currently not available for use by any institutions looking to deploy its usage. Meanwhile, there are other alternative methods available to institutions.
National Identity Verification, (NIN) is another method aside from ID card verification. The ban according to some experts might be to drive the use of NIN for verification. Meanwhile, there is yet to be a verifiable API in place for use.
The current ban, no doubt affected a lot of FinTech startups who majorly use BVN for identity verification. Most especially crypto startups.
Even at that, many users are still flowing into the crypto space from Nigeria with the steady growth of the crypto space.