OKX announces its withdrawal from the Nigerian market due to regulatory changes

The platform stopped supporting the local fiat currency back in May

18.07.2024 - 13:52

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3 min

What’s new? Crypto exchange OKX will leave Nigeria and stop serving local customers due to regulatory issues. The news came as a surprise to many users, although the platform started restricting local operations as early as two months ago.

Source: X.com

What else is known? On July 17, the exchange sent a notice to Nigerian customers to discontinue service, citing “recent changes in local laws and regulations.” As of August 16, local users will not be able to access the platform’s features, except for closing positions and withdrawing funds.

In a comment to The Block, an OKX spokesperson clarified that as of August 30, Nigerian customers will no longer be able to access their accounts, but their remaining funds will still be protected.

OKX suspended withdrawals in the local currency, the naira, in May 2024, citing regulatory concerns. This came after the Nigerian government accused major crypto exchange Binance of manipulating the naira exchange rate, money laundering, and tax evasion.

The authorities later blocked access to all major centralized crypto exchanges (CEXs). At the same time, at the end of April, the Central Bank of Nigeria denied the ban for banks to make payments in favor of crypto exchanges.

Binance, for its part, announced that it was discontinuing support for the naira in its products and urged users to withdraw fiat or convert it to dollar-pegged stablecoins. In response, Nigeria’s Economic and Financial Crimes Commission (EFCC) demanded that Binance disclose user information.

Back in February, two top Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, were arrested in Nigeria over the case. The latter’s condition deteriorated significantly in detention, which drew the attention of the US officials to the case. They urged President Joe Biden to treat the situation as a hostage-taking.