Regulation
Crypto Exchange, OKX, to Shut Down Services in Nigeria in August 2024 Due to Unfavorable Regulatory Conditions – BitKE
Major cryptocurrency exchange OKX has announced that it will close its operations in Nigeria in August 2024.
According to an email sent to its Nigerian clients on July 18, 2024, this move is due to the unfavorable regulatory conditions in Nigeria. Clients should withdraw their funds from OKX no later than August 16, 2024.
“We are discontinuing OKX services in Nigeria following recent changes in local laws and regulations. This is based on our ongoing evaluation of policies in each market we operate in. Effective August 16, 2024, our clients will no longer be able to open new positions or access any services on the platform, with the exception of withdrawals and closing/redemption of open positions. We ask that you review your account and complete the applicable steps by 12:00 PM (PST) on August 16, 2024.”
– OKX sends an email to users
OKX was one of the exchanges that suspended some of its services, including P2P, as the federal government cracked down on cryptocurrency firms in early 2024.
REGULATION | Cryptocurrency exchanges to halt stablecoin sales in Nigeria amid apparent crackdown
“A meeting of cryptocurrency founders was held on Tuesday [February 27 2024] morning, and some of them agreed to suspend trading on their platform,” a person present at that meeting told a local… photo.twitter.com/iiYBuYrpOu
— BitKE (@BitcoinKE) February 29, 2024
Exchanges operating in the country have come under scrutiny as authorities believe crypto platforms facilitate speculation and potential manipulation of exchange rates. Coinbase, Quidax and Binance have also been hit.
The Nigerian Securities and Exchange Commission (SEC) recently issued a notice asking local cryptocurrency companies to apply for registration under its Accelerated Regulatory Incubation Program (ARIP) in less than 30 days.
🇳🇬REGULATION | Nigerian SEC issues VASP listing notice in 30 days due to ‘current realities’
After the 30-day period, the Commission indicated that it would take enforcement action against any operational VASP that did not comply with the guidelines. photo.twitter.com/ThvMC4MwFQ
— BitKE (@BitcoinKE) June 22, 2024
The registration process under the ARIP includes a number of eligibility requirements that operators must meet:
- Be incorporated and have an office in Nigeria and its CEO/Chief Executive Officer or equivalent must be a resident of Nigeria
- Be able to carry out investment and securities activities
- Seeking registration or having pending applications relating to virtual assets with the Commission
Applicants must also demonstrate satisfactory provisions regarding investor protection and public interest, among others. Pursuant to ARIPThe SEC wants to register all virtual asset operators while continuing to evaluate the industry and periodically change regulations.
See also
Since the introduction of ARIP, one of the cryptocurrency exchanges, KuCoin, has announced that it will start collecting a 7.5% VAT on trading fees from its Nigerian users starting July 8, 2024.
_________________________________________