Bundle, a Nigerian social payments app, is winding down its cryptocurrency exchange division. Although the reasons for Bundleโs decision have not been disclosed, it indicates a change in the companyโs approach.
Bundle dumps crypto amid CBN restrictions
The company says the decision was prompted by the โcurrent gloomy market conditions,โ leading it to refocus on its core payments business.
Until Sep. 30, 2023, Bundle will continue to support crypto trading on its platform. However, users will no longer be able to buy or sell cryptocurrencies through Bundle after that.
Bundle launched in 2021 and became one of Nigeriaโs top crypto exchanges. However, the company has faced challenges due to regulatory actions taken by the Nigerian government against cryptocurrency trading.
Over the years, the Central Bank of Nigeria (CBN) has cited concerns about the potential risks cryptocurrencies could pose to the stability of Nigeriaโs financial system.
The apex bank claims crypto can potentially undermine its monetary policy, disrupt financial stability, and threaten national security. As such, the authority has banned crypto in the country since 2017.
This regulatory action by the CBN reflects their determination to address these perceived risks and safeguard the countryโs financial well-being.
The closure of Bundleโs crypto exchange is disappointing news for the Nigerian crypto community. Peer-to-peer (P2P) exchanges, includingย Localbitcoins, NairaEx, and Quidax, have also been compelled to suspend trading operations in Nigeria due to the CBNโs crackdown.
The future trajectory of the Nigerian crypto market remains uncertain. Nevertheless, the closure of Bundleโs crypto exchange signifies the CBNโs continued determination to regulate and restrict cryptocurrency trading within the country.
Crypto still bannedย
The CBN has consistentlyย raised concernsย over the usage of cryptocurrencies within the country, directing banks and financial institutions to refrain from facilitating cryptocurrency transactions.ย
The CBNโsย apprehensionsย are rooted in several factors, including the lack of proper regulation surrounding cryptocurrencies and potential risks and vulnerabilities.ย
Cryptocurrencies are notorious for their volatility, making them potentially risky investment assets. Moreover, there have been instances where cryptocurrencies such as Monero were exploited for illicit activities such asย money launderingย and financing terrorism, deepening the CBNโs concerns.
These factors collectively contribute to the CBNโs cautious stance towards cryptocurrencies, as they aim to protect the financial system and minimize potential risks associated with their usage.
The CBNโs crackdown onย cryptocurrenciesย has generated mixed reactions. Some observers welcome the decision, believing it is necessary to safeguard the countryโs financial system. Conversely, others criticize the move, viewing it as an excessive exercise of government authority that could stifle innovation.
The long-term outcome of the CBNโs actions remains uncertain. Nonetheless, the CBN is committed to adopting a strict approach to cryptocurrencies, despite the countryโs recent introduction of aย National Blockchain Policy.ย ย
