Key Takeaways:
- OKX will stop all services in Nigeria, except for withdrawals, by August 16, 2024
- Nigerian users must withdraw their funds by August 30, 2024, after which further actions will require contacting customer service.
Global cryptocurrency exchange OKX has announced that it will cease its operations in Nigeria due to evolving local regulations. This decision, disclosed in an email to its Nigerian clients on July 17, marks a significant shift for the platform and its users.
Nigerian customers have until August 16, 2024, to close their positions, as the exchange will no longer allow opening new positions or accessing any services other than withdrawals and closing existing positions.
The announcement follows a backdrop of regulatory scrutiny in Nigeria, where authorities have tightened their grip on centralized exchanges.
This regulatory environment has been challenging for crypto platforms, with OKX previously halting withdrawal services for the Nigerian Naira in May. Other exchanges, such as Binance and KuCoin, have also faced stringent regulations, with Binance experiencing criminal charges for alleged money laundering and tax evasion, which were later dropped.
OKX assured users that their funds remain secure and accessible. However, they must withdraw these funds by August 30, 2024. After this date, users will need to contact OKX customer service for any account-related actions.
The exchange provided clear steps for Nigerian users to follow before the deadline: closing P2P, margin, futures, and options positions, redeeming assets from Grow products, and transferring all assets out of their OKX accounts.
“We strongly encourage you to withdraw or transfer funds before this date, as remaining balances may be subject to further restrictions in accordance with our Terms of Service along with local laws,” OKX stated in the email.
This regulatory pressure and the exit of major exchanges like OKX highlight a significant setback for Nigeria compared to other African countries like South Africa, which is emerging as a leader in the continent’s cryptocurrency market.
The slow regulatory progress in Nigeria is seen as a stark contrast to the prominence of Bitcoin and cryptocurrency in the forthcoming US elections.
The decision by OKX comes after its assessment of the policies in the markets it serves. This move follows a similar trend seen in May 2024 when OKX ceased centralized crypto trading services in Hong Kong to comply with local regulatory requirements.
As the Nigerian government continues its crackdown on crypto trading services, linking them to the decline in the local currency, the future of cryptocurrency exchanges in Nigeria remains uncertain. However, the actions of platforms like OKX highlight the ongoing evolution and adaptation required in response to regulatory landscapes worldwide.
