Crypto exchange OKX recently notified its Nigerian clients that they have until Aug. 16 to close their positions as it is ceasing operations in the country due to local regulations. In a statement obtained by CryptoSlate, OKX stated that users will no longer be able to open new positions or access any services on the platform, except for withdrawals and closing existing positions. Users must withdraw their funds by Aug. 30, 2024, after which they will need to contact customer service for any account-related actions.
The announcement from OKX has caused concern among Nigerian crypto users, who have expressed their frustrations on social media platforms. OKXHelpDesk responded to these concerns by stating that they are unable to provide KYC verification services for Nigerian users. 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’s decision to cease operations in Nigeria is part of a larger trend of regulatory changes impacting the crypto industry in the country. KuCoin recently notified its Nigerian users of a 7.5% value-added tax (VAT) on all transactions, citing a regulatory update as the reason for this change. Similarly, Binance is facing legal action from Nigerian authorities for money laundering and tax evasion. One of the exchange executives is currently detained in Abuja, despite international calls for his release.
Nigerian authorities maintain that these actions are part of a broader effort to ensure compliance in the emerging crypto industry. The crackdown on crypto platforms and exchanges highlights the challenges faced by companies operating in countries with rapidly evolving regulatory environments. It also underscores the need for regulatory clarity and certainty for both users and businesses in the crypto space.
The regulatory changes in Nigeria have had a significant impact on crypto exchanges operating in the country, with OKX being the latest to cease operations due to local regulations. As the industry continues to face regulatory scrutiny, it is essential for both users and businesses to navigate these challenges and adapt to the evolving regulatory landscape.
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