OKX to exit Nigeria amid regulatory hurdles, sets August deadline for users OKX to exit Nigeria amid regulatory hurdles, sets August deadline for users
The Nigerian government has recently intensified its regulatory crackdown on crypto platforms in the country.
2 min read
Updated: Jul. 17, 2024 at 8:01 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto exchange OKX has informed Nigerian clients that they have until Aug. 16 to close their positions, as it is ceasing operations in the African country due to local regulations.
In a July 17 email statement obtained by CryptoSlate, OKX informed users they would no longer be able to open new positions or access any services on the platform, except for withdrawals and closing existing positions.
OKX assured users that their funds remain secure and accessible. However, they must withdraw these funds by Aug. 30, 2024. After this deadline, users will have to contact customer service for account-related actions.
The announcement has caused concern among Nigerian crypto users, who have voiced their frustrations on social media platform X. OKXHelpDesk responded by stating the platform cannot provide know-your-customer (KYC) services for Nigerian users.
It stated:
“Hi there, we are currently unable to offer KYC verification services for Nigeria. Any updates regarding licensing will be shared on our official channels. Please stay connected with us for any future announcements on this matter, thank you!”
The decision follows OKX’s removal of peer-to-peer services for Nigerian users and the removal of the local fiat currency, the Nigerian naira (NGN), from its platform in May.
OKX has yet to respond to CryptoSlate’s request for additional commentary as of press time.
Crypto exchanges challenges in Nigeria
OKX’s decision follows the recent crackdown on crypto platforms in Nigeria.
Earlier this month, KuCoin notified its Nigerian users of a 7.5% value-added tax (VAT) on all transactions. KuCoin cited a regulatory update in Nigeria as the reason for this change.
Furthermore, Binance faces legal action from Nigerian authorities for money laundering and tax evasion. One of the exchange executives, Tigran Gambaryan, is currently detained at the Kuje Correctional Centre in Abuja despite his worsening health conditions and increased international calls for his release.
Meanwhile, the Nigerian authorities maintain that these actions are part of a broader effort to ensure compliance in the emerging industry.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
OKX
OKX is a world-leading digital asset exchange, providing advanced financial services to global traders by using blockchain technology.
KuCoin
KuCoinโฏis a global cryptocurrency exchange for numerous digital assetsโฏand cryptocurrencies that launched in September 2017.