Nigerian payments app Bundle ceases crypto exchange, shifts focus to Cashlink in response to shareholder-led business restructuring.
Bundle’s Pivot to Cashlink
Nigerian social payments platform Bundle has recently announced its decision to cease crypto exchange services and instead focus on its peer-to-peer platform, Cashlink. The move comes as the company’s shareholders see potential in the growing Web3 and blockchain community, and they believe that concentrating on payment solutions aligns with the future of the digital asset industry.
Founded by Yele Bademosi in 2020, Bundle quickly gained popularity in Nigeria, attracting 50,000 monthly active users and processing a monthly volume of $50 million.
However, with the rise of Cashlink and its impressive track record of over 3 million transactions in less than two years, Bundle’s shareholders see an opportunity to pivot their business toward this burgeoning market. Cashlink offers a peer-to-peer platform that aligns well with the Web3 ecosystem’s demands, creating a favorable environment for future growth.
User Transition and Asset Withdrawal
As Bundle plans to halt its exchange services, users will no longer be able to sign up for the platform, deposit assets into their Bundle wallets, or swap assets, except for Tether (USDT). Additionally, if users do not have Nigerian naira or any other fiat currency in their Bundle wallets, they will be unable to withdraw funds using Cashlink. To ensure a seamless transition for users, Bundle has advised them to withdraw their assets from the app before September 12, 2023.
For users in Nigeria, Ghana, Kenya, and other Francophone countries, Bundle has provided instructions on transferring their funds from Bundle to any preferred exchange. Nigerian users can choose to withdraw naira using Cashlink or transfer funds to their bank accounts through P2P express. To accommodate users with balances less than $10, Bundle has provided a link for easy withdrawal.
Regulatory Challenges in Nigeria’s Crypto Landscape
The decision to cease crypto exchange services by Bundle comes amidst regulatory challenges in Nigeria’s crypto landscape. In July, the Securities and Exchange Commission (SEC) ordered Binance, the world’s largest cryptocurrency exchange by trading volume, to halt its operations in the country. The regulator cited Binance’s lack of registration and regulation as the basis for its “illegal” status in Nigeria.
Notably, Nigeria’s central bank previously banned banks and financial institutions from facilitating transactions in digital currencies in 2021. Despite the ban, residents in Africa’s most populous country still account for the largest volume of digital token transactions conducted on peer-to-peer trading platforms outside of the United States.
Final Thoughts
As the ecosystem evolves, industry players and regulators must collaborate to develop clear and transparent regulatory frameworks that foster innovation while ensuring investor protection.