OKX, an international player in the cryptocurrency exchange and web3 service arena, has made a significant announcement regarding the cessation of its operations in Nigeria effective from August 16, 2024. The decision to halt services is attributed to the evolving legal and regulatory landscape in the country. The company communicated this development to its Nigerian user base through an email, explaining that the action aligns with its commitment to continually evaluate the regulatory environment of the markets in which it operates.
As a result of this decision, from the stated date onward, Nigerian customers of OKX will face restrictions on their accounts. They will not be permitted to initiate new trades or engage with the platform’s services, with the exception of withdrawing funds and settling or redeeming any existing positions.
OKX has provided a clear set of instructions for its users to ensure a smooth transition. The steps include the closure of all peer-to-peer (P2P), margin, perpetual, futures, and options trades, as well as the cancellation of all spot orders for cryptocurrencies like USDT, DAI, and EURT. Additionally, users are advised to redeem all their assets from the platform’s Grow products, which cover services such as Earn, Loan, and Jumpstart. Finally, customers are instructed to transfer any remaining assets from their OKX accounts to an external wallet of their choosing.
Post-August 16, 2024, the platform will no longer accept deposits or allow any other form of transaction. OKX reassures its customers that their funds will remain secure and accessible within their accounts until August 30, 2024. After this deadline, users will need to reach out to OKX’s customer service for any assistance with their accounts.
The exchange emphasizes the importance of users taking action to withdraw or transfer their funds before the cutoff date to avoid potential complications. OKX warns that any remaining balances after this date may be subject to additional restrictions, as dictated by the company’s Terms of Service and the prevailing local regulations.
The regulatory climate for global cryptocurrency exchanges in Nigeria is becoming increasingly stringent. Recently, KuCoin, another major player in the crypto exchange market, notified its Nigerian clientele that it would be implementing a value-added tax (VAT) of 7.5%, in addition to the standard 0.1% transaction fees, for various transactions conducted on its platform. This introduction of VAT by KuCoin is in response to a regulatory update within Nigeria.
This development follows KuCoin’s earlier decision in May 2024 to suspend all peer-to-peer (P2P) services involving the Nigerian naira (NGN), as well as the Fast Buy services that utilize naira cards. The suspension was part of the exchange’s efforts to ramp up its compliance with local regulations.
Binance, another leading global cryptocurrency exchange, has also been navigating the challenging regulatory environment in Nigeria. In March 2024, Binance ceased all services related to the Nigerian naira. Subsequently, the exchange has come under legal scrutiny by Nigerian authorities, facing allegations of money laundering and tax evasion.
These legal challenges have led to the detention of one of Binance’s executives, Tigran Gambaryan, who is currently held at the Kuje correctional center in Abuja. The situation highlights the broader trend of tightening regulations for cryptocurrency operations in Nigeria, affecting several top exchanges as they adjust their services and confront legal hurdles in the country.
