The Central Bank of Nigeria has reportedly banned fintech companies and other non-bank financial institutions in Nigeria from providing the Bank Verification Number validation service.
Paystack revealed this in messages sent to its customers on Thursday.
Paystack said, “We’ve recently been made aware of a regulatory directive from the primary custodian of Nigeria’s BVN service to all their partners to suspend the provision of the BVN validation service to their third-party partners.
“This directive affects every non- bank in Nigeria that offers BVN validation service.”
The company said in line with the development, it has temporarily suspended its BVN validation service effective midnight of April 8, 2021.
This is another regulatory move by the apex bank to stifle innovation, according to experts.
The CBN early this year banned all crypto currency related activities from official banking channels.
In Nigeria, the fintech space has raised over $600m in the last five years.
The Securities and Exchange Commission also banned Bamboo, Chaka among others according to Tosin Olugbenga, a Software and Blockchain Engineer.
CBN has banned paystack and others from providing BVN validation services for customers.
SEC also banned Bamboo, Chaka etc and they killed businesses like Patricia..