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Cryptocurrencies: Reactions as Nigeria’s CAC rejects registration application of Blockchain start-up

Blockchain Technology in Nigeria Photo: Shutterstock

*The Corporate Affairs Commission reportedly says ‘Blockchain is yet to be recognised by the Nigerian Government, kindly expunge’

*Nigeria now unlikely to achieve its objective of generating $10billion in revenue from blockchain technology, says report

Isola Moses | ConsumerConnect

Emphasising that the Federal Republic of Nigeria has yet to accord any official recognition to crypto operations in the economy, the Corporate Affairs Commission (CAC), reportedly, has rejected an application for registration by a start-up in the country.

ConsumerConnect gathered the regulatory Commission took the decision based on the fact that Blockchain is yet to be recognised by the Nigerian Government.

The unnamed start-up, which is building an API connection for blockchain gaming rewards, was told that CAC would only process the application, once the reference to blockchain technology is resolved in the West African country, Bitcoin online report said.

The Commission was quoted to have written that “Blockchain is yet to be recognised by the Nigerian Government, kindly expunge.”

Accordingly, the CAC decision has angered some members of the Blockchain community in Nigeria, according to report.

One of those expressing their disappointment with the CAC, report noted, is Adedeji Owonibi, Founder and Chief Operating Officer (COO) at Convexity, a blockchain incubating hub.

As the report by Cryptoassetbuyer explains, Owonibi’s displeasure with the agency stems from the fact that CAC is one of the 27 institutions in the country that are supposed to implement the country’s blockchain strategy.

While lamenting what some regard as a backward decision in this regard, Owonibi reportedly stated: “I can’t believe we have this level of ignorance in govt circle, at least not the agency saddled with company registration in Nigeria.

“The staff that queried this application for company registration on the pretence that blockchain is not approved by the Nigerian Govt need to be educated immediately for ease of doing business to improve in Nigeria.”

Vice-President (Prof.) Yemi Osinbajo

It was also learnt the stakeholders in the country’s Blockchain community have urged the intervention of the Nigerian Government on the matter.

The report also said that Charles Okaformbah, Co-founder of Convexity, also expressed his disapproval of the CAC’s decision on the company’s proposed registration.

Okaformbah in his statement requested Nigerian Vice-President (Prof.) Yemi Osinbajo, who is said to be one of the few top officials in the Nigerian Government to back FinTechs (Financial Technologies) to intervene.

Hitherto, stakeholders in the crypto market in the country have disclosed that “the Blockchain technology has the potential to revolutionise the Nigerian economy.”

However, following the CAC’s reported decision, the Cryptoassetbuyer report added that Nigeria is now unlikely to achieve its goal of generating $10billion in revenue from blockchain technology.

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