Regulation
OKX to Exit Nigeria Due to Regulatory Hurdles, Set August Deadline for Users
Cryptocurrency Exchange OKX has informed Nigerian clients that they have until August 16 to close their positions, as it will cease operations in the African country due to local regulations.
In a July 17 email statement obtained by CryptoSlate, OKX informed users that 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 has assured users that their funds remain safe and accessible. However, they must withdraw these funds by August 30, 2024. After this deadline, users will need to contact customer service for account-related actions.
The announcement sparked concern among Nigerian cryptocurrency users, who took to social media platform X to express their frustration. OKXHelpDesk responded by saying that the platform cannot provide know-your-customer (KYC) services for Nigerian users.
It declared:
“Hi, 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 the removal of OKX peer to peer services for Nigerian users and the removal of the local fiat currency, the Nigerian naira (NGN), from its platform in May.
At the time of writing, OKX has not yet responded to CryptoSlate’s request for further comment.
Challenges of Cryptocurrency Exchanges in Nigeria
OKX’s move follows the recent crackdown on crypto platforms in Nigeria.
Earlier this month, KuCoin has informed its Nigerian users of a value added tax (VAT) of 7.5% on all transactions. Currency cited a regulatory update in Nigeria as the reason for this change.
Additionally, Binance faces legal action from Nigerian authorities for money laundering and tax evasionOne of the leaders of the exchange, Tigran Gambaryan, is currently detained at Kuje Correctional Centre in Abuja despite his worsening of health conditions AND International calls for his release are growing.
Meanwhile, Nigerian authorities claim that these actions are part of a broader effort to ensure compliance in the emerging sector.