– Nigerian social payments app Bundle is shutting down its cryptocurrency exchange division.
– The decision is attributed to the „gloomy market conditions“ and a shift in focus to the core payments business.
– The closure follows regulatory actions by the Central Bank of Nigeria (CBN) against cryptocurrency trading.
Nigerian social payments app Bundle to shut down crypto exchange
Reasons for closure
Nigerian social payments app Bundle has announced that it will be winding down its cryptocurrency exchange division. While the specific reasons for this decision have not been disclosed, the company cited „current gloomy market conditions“ as a factor and stated that it intends to refocus on its core payments business. The closure of the division is expected to take place by September 30, 2023.
Challenges from regulatory actions
Bundle, which launched in 2021, quickly became one of Nigeria’s top crypto exchanges. However, it has faced challenges due to regulatory actions taken by the Central Bank of Nigeria (CBN) against cryptocurrency trading. The CBN has expressed concerns about the potential risks that cryptocurrencies could pose to the stability of Nigeria’s financial system and has banned crypto in the country since 2017.
Impact on Nigerian crypto community
The closure of Bundle’s crypto exchange is disappointing news for the Nigerian crypto community. It follows the suspension of trading operations by peer-to-peer (P2P) exchanges such as Localbitcoins, NairaEx, and Quidax, which have also been affected by the CBN’s crackdown on cryptocurrency trading. The future trajectory of the Nigerian crypto market remains uncertain.
CBN’s stance on crypto
The CBN’s regulatory actions against cryptocurrency trading reflect its determination to address the perceived risks and safeguard the country’s financial well-being. The authority believes that crypto could potentially undermine its monetary policy, disrupt financial stability, and threaten national security. Therefore, the closure of Bundle’s crypto exchange underscores the CBN’s continued efforts to regulate and restrict cryptocurrency trading within Nigeria.
The closure of Bundle’s crypto exchange further adds to the uncertainty surrounding the Nigerian crypto market. With the CBN’s ban on crypto and the closure of multiple exchanges, the future trajectory of cryptocurrency trading in Nigeria remains uncertain. It remains to be seen how the crypto landscape will evolve and whether there will be any changes in the regulatory approach by the CBN.