Regulations: OKX, cryptocurrency exchange, stops operations in Nigeria

OKX, a prominent cryptocurrency exchange, is leaving Nigeria due to recent changes in local regulations.

Indeed, OKX has notified its Nigerian users via email on July 17 that all operations would cease by August 16.

Accordingly, users will only have access to the platform to withdraw funds or close positions, marking a complete suspension of OKX’s activities in the country.

OKX suspended naira withdrawals in May 2024, citing regulatory uncertainties, which coincided with similar actions by the Nigerian government against rival exchange Binance. Binance is facing allegations of fiat currency manipulation, money laundering, and tax evasion.

Consequent upon this, access to major centralized exchanges was restricted, prompting Binance to stop naira services and provide users with a brief window to withdraw funds or convert to dollar-backed stablecoins.

Despite these measures, the anti-graft agency, the Economic and Financial Crimes Commission, EFCC, escalated its oversight, demanding user information from Binance.

The regulatory scrutiny appears part of broader efforts to regulate and monitor cryptocurrency activities within Nigeria.

Earlier this year, Nigerian authorities detained Binance executives, sparking international interest and potentially straining diplomatic relations with the United States.

Meanwhile, OKX withdrew its license application to offer virtual asset services in Hong Kong in May and ceased centralized crypto trading services for Hong Kong residents by the end of the same month.

The company assured users that their assets remained secure and attributed the decision to strategic business evaluations.

As OKX prepares to exit Nigeria, affected users are urged to manage their accounts before the August 16 deadline, emphasizing the ongoing challenges faced by cryptocurrency exchanges amidst evolving regulatory landscapes worldwide.