Home Start-ups CAC denies blockchain start-up application, says technology is not recognized by government

CAC denies blockchain start-up application, says technology is not recognized by government

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The Corporate Affairs Commission, CAC, has reportedly rejected an application to register a start-up based on the grounds that blockchain is yet to be recognized by the Nigerian government.

According to a report, the yet-to-be-identified startup, whose business offerings has an API connection for blockchain gaming rewards, was told that the CAC would only process their request once the reference to blockchain technology is resolved.

The CAC reportedly wrote: “The blockchain has not yet been recognized by the Nigerian government, please remove it. As expected, the decision angered some members of the Nigerian blockchain community.

The founder and COO of Convexity, Adedeji Owonibi, a blockchain incubation hub, is among those who expressed disappointment with CAC over refusal to register startups that leverage blockchain technology.

According to the Cryptoassetbuyer report, Owonibi’s dissatisfaction with the agency stems from the fact that CAC is one of 27 institutions in Nigeria that is supposed to implement the country’s blockchain strategy. Lamenting what some see as a regressive move, Owonibi said:

“I can’t believe we have this level of ignorance in the government circle, at least not the company registration agency in Nigeria. Staff who questioned this business registration application under the pretext that the blockchain is not approved by the Nigerian government must be educated immediately so that the ease of doing business improves in Nigeria”.

In addition to Owonibi’s remarks, the report also quotes Convexity’s co-founder, Charles Okaformbah, similarly expressing his disapproval of CAC’s decision.

Charles Okaformbah, the co-founder calls on the country’s vice president, Yemi Osinbajo to intervene.

Following the CAC decision, the Cryptoassetbuyer report concludes that Nigeria is now unlikely to meet its goal of generating $ 10 billion in revenue through blockchain technology.

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