Introduction
Bundle, a Nigerian social payments app, has announced that it will be shutting down its crypto exchange services. The decision was made due to regulatory restrictions from the Central Bank of Nigeria (CBN). Bundle had been offering crypto trading services to its users since 2020.
Regulatory Restrictions
The CBN had previously issued a circular in February 2021, instructing all Nigerian banks to stop facilitating cryptocurrency transactions. The ban was met with backlash from the crypto community in Nigeria, as it limited their ability to buy and sell cryptocurrencies. Bundle had attempted to find ways to navigate the ban, but ultimately decided to shut down its crypto exchange services.
In a statement, Bundle said, “We believe that the recent CBN directive on cryptocurrency trading ultimately undermines Nigeria?s progress in the cryptocurrency space and stifles innovation.”
Impact on Users
Bundle users who had funds in their crypto wallets will have until March 31, 2021, to withdraw their funds. After this date, all crypto wallets will be closed.
Bundle will continue to offer its social payments services, which allow users to send and receive cash, airtime and other assets.
Future of Cryptocurrency in Nigeria
The ban on cryptocurrency transactions has raised concerns about the future of cryptocurrency in Nigeria. Many in the crypto community believe that the ban is a step backwards for Nigeria, which has been seen as a leader in the African cryptocurrency space.
However, some have also expressed hope that the ban will be lifted in the future, and that Nigeria will continue to be a hub for innovation in the cryptocurrency space.
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Conclusion
Bundle’s decision to shut down its crypto exchange services is a blow to the crypto community in Nigeria. However, it is also a reflection of the regulatory restrictions that have been placed on cryptocurrency transactions in the country. As the future of cryptocurrency in Nigeria remains uncertain, it is clear that the crypto community will need to continue to navigate regulatory challenges in order to grow and innovate.
