Nigeria's fintech bubble about to pop!

BVN identity verifications for nonbanks have been shut down https://twitter.com/tosinolaseinde/status/1380263082631516162

It seems all founders and VCs assumed the biggest risk to their vision, Regulatory flex

https://twitter.com/pesa_africa/status/1380449036138856449

In Kenya the Central Bank Governor made it a priority to work on regulatory foundations for all payment gateways, kinda like setting the stage for anything that gets built on top eg Fintech products. Same goal, different approach. Nigeria is only flexing now

Fintech startups with $$$ will win b/c you need runway to

hedge your bets across different markets
Wait it out across different markets
Pay top dollar for compliance

At least $2 million anything less is child’s play

For example, Chipper cash has a crypto product under ‘Invest’ in stealth awaiting regulatory compliance. Chipper cash has $30 million for 8 African markets.

How much does your Fintech startup have to compete w/ Chipper cash? Measly $100k? GTFO

Highlighted in Green is FATF compliance for custodial hosted wallets. You cannot transfer out your crypto (for now). FATF says you can only transfer crypto between 2 or more compliant products ie travel rule. So Chipper is already playing the long compliance game

FATF rules on crypto custodial/hosted wallets and travel rule https://twitter.com/pesa_africa/status/1284093799040462849

Pan African Fintech Crypto founders please learn to connect dots and be more strategic

Ps: this thread is informed by publicly available information just a matter of connecting dots.

https://twitter.com/pesa_africa/status/1380067215890857990