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Cryptocurrency exchange OKX is discontinuing its
services in Nigeria due to what it termed changes in local regulations, Cointelegraph reported, citing emails sent to users. The surprise announcement followed months of gradual service reduction, culminating in a complete
exit by mid-August.
A Complete Suspension of Operations
In the emails sent to Nigerian clients on July 17, the
crypto exchange specified that all services would cease by August 16. After
this deadline, users will only be able to access the platform to withdraw funds or close positions, marking a complete suspension of the country’s exchange
operations.
OKX suspended naira withdrawals in May 2024, citing
regulatory concerns. This occurred amid accusations by the Nigerian government
against rival Binance, which was charged with manipulating the country’s fiat
currency, money laundering, and tax evasion.
Subsequently, the government blocked access to major
centralized exchanges, leading Binance to cease its naira services and give
users a short window to withdraw funds or convert to dollar-denominated
stablecoins.
Despite these measures, Nigeria’s Economic and
Financial Crimes Commission intensified its scrutiny, demanding that
Binance disclose user information for all individuals who used the platform for
trading. This regulatory pressure appears to be part of a broader effort to
control and monitor cryptocurrency activities within the country.
Detainment of Binance Executives
The situation escalated earlier this year when
Nigerian authorities detained Binance executives Nadeem Anjarwalla and Tigran
Gambaryan in February 2024. The case has garnered the interest of US lawmakers, and the situation could strain diplomatic relations between Nigeria
and the United States.
Elsewhere, OKX withdrew its license application to
provide virtual asset services in Hong Kong in May and announced that it would
suspend centralized crypto trading services for users in the region. The
company said it would discontinue its centralized crypto trading services for
Hong Kong residents by the end of May.
However, the exchange assured users of the safety of
their assets, saying their assets were not unaffected. The company added that
the decision to withdraw the license application followed an evaluation of its
business strategy. Users in Hong Kong were given up to August 31, 2024, to
withdraw assets from their OKX accounts.
This article was written by Jared Kirui at www.financemagnates.com.
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