Carlos Fernandes The financial technology firm Vella Finance, based in Nigeria, has officially announced that it will cease to provide cryptocurrency-related services as of October 30. Co-founder Tolu Adedayo stated that simultaneously offering both cryptocurrency and traditional banking services is not a viable approach, leading to the company’s decision to discontinue its crypto services.
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Strategic Decision
Vella Finance will now turn its attention solely towards offering banking services to small and medium-sized enterprises (SMEs). According to Tolu Adedayo, the choice to halt cryptocurrency services was motivated by strategic business considerations.
In an announcement made on October 23, reported by Techcabal, Vella Finance communicated to its users and subscribers that the company will withdraw its cryptocurrency services starting from October 30. Explaining the rationale behind this strategic shift, Adedayo stated:
We are fully committing to SME banking. The nature of banking is such that it necessitates operating within regulatory frameworks. Our business model has always been data-driven, serving businesses with insights based on user and transactional data. Transitioning to a comprehensive banking system will allow us to serve our clients more effectively.
Adedayo further elaborated that, in his assessment, it is impractical to offer both cryptocurrency and traditional banking services concurrently.
Surge in Nigerian Interest for Cryptocurrencies
Interestingly, Vella Finance’s decision comes at a time when there is a noticeable increase in the popularity of digital assets like Bitcoin and Tether in Nigeria. As per a recent Chainalysis report, Nigeria is one of only six countries among the top 50 globally that has seen a year-over-year growth in cryptocurrency transaction volume. Additionally, the swift depreciation of Nigeria’s local currency has been cited as a catalyst for the growing interest in digital assets.
Despite the evident public enthusiasm for cryptocurrencies, Adedayo revealed that Vella Finance is in the process of introducing new features aimed at cementing the company’s full-scale entry into the business banking sector.
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We invite you to share your views on this development in the comments section below.
Frequently Asked Questions (FAQs) about Vella Finance
Why has Vella Finance decided to discontinue cryptocurrency services?
Vella Finance has chosen to cease offering cryptocurrency-related services due to strategic business considerations. Co-founder Tolu Adedayo stated that it is not feasible to offer both cryptocurrency and traditional banking services simultaneously. The firm will now focus solely on providing banking services to small and medium-sized enterprises (SMEs).
What will Vella Finance focus on moving forward?
Vella Finance will redirect its attention towards serving SMEs by offering banking services tailored to this segment. The company’s decision is driven by a data-backed business model and the regulatory demands associated with traditional banking.
When will the discontinuation of cryptocurrency services take effect?
The cessation of cryptocurrency services by Vella Finance took effect as of October 30, following an official announcement to users and subscribers on October 23.
Is the discontinuation influenced by regulatory issues?
While regulatory considerations were mentioned as a factor, the primary reason for discontinuing cryptocurrency services, according to co-founder Tolu Adedayo, is based on business strategy and the impracticality of offering both types of services concurrently.
What is the current state of cryptocurrency interest in Nigeria?
According to a recent Chainalysis report, Nigeria is among a handful of countries that have seen year-over-year growth in cryptocurrency transaction volume. Additionally, the devaluation of the local currency has contributed to a heightened interest in digital assets.
Is Vella Finance planning to introduce new features?
Yes, Tolu Adedayo has indicated that Vella Finance is in the process of rolling out new features aimed at solidifying the company’s full-scale entrance into the business banking sector.
How can one stay updated on Vella Finance’s future developments?
You can subscribe to pertinent financial newsletters or keep an eye on announcements made by Vella Finance to stay updated on their future activities and strategic directions.
More about Vella Finance
- Vella Finance Official Announcement
- Techcabal Report on Vella Finance
- Chainalysis Report on Cryptocurrency Volume
- Nigerian Currency Depreciation News
- Regulatory Frameworks for Banking in Nigeria
- SME Banking Insights
8 comments
well, i’m not sure how this will go down, but I’m definitely staying tuned to see what happens next.
Vella’s making a mistake if you ask me. Crypto’s the future and they’re backing away?
Interesting how they say it’s not “feasible” to offer both. Would love to hear more on why exactly.
Can’t believe they’re quitting crypto right when Nigeria’s transaction volumes are up. What are they thinking!
So they’re going all in on SME banking huh? I guess with all the regulations and stuff, makes sense but still…
Wow, didn’t see that coming from Vella Finance. Crypto’s hot right now, seems like a weird time to pull out.
Backing out of crypto is no small decision. If they’ve got a good strategy for SMEs, could pay off big time tho.
guess it’s a strategic move, but still, it’s like leaving a party just as it gets started.