“We Are Discontinuing Services": After Binance, Another Crypto Firm Ceases Operations in Nigeria
- OKX, a popular crypto exchange, has announced it will stop its operations in Nigeria as a result of increasing regulatory constraints
- The digital asset exchange sent an email notification to its users, detailing how they can redeem and transfer their assets out of OKX
- The company is only one out of many other cryptocurrency-related companies that are faced with regulatory challenges in Nigeria
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
OKX, a cryptocurrency exchange, has declared its departure from Nigeria.
The decision is attributed to stringent local regulations following a recent crackdown on digital asset services.
Source: UGC
The announcement coincides with the enforcement of stricter local laws affecting the operational viability of numerous cryptocurrency firms.
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This move highlights the persistent regulatory challenges confronting crypto companies in the Nigerian market.
OKX cites regulatory challenges
In a July 17 email, the exchange notified its customers that services would cease in the country following an assessment of local regulations.
According to OKX, the decision to halt services in Nigeria was made after a thorough review of local policies.
The exchange cited recent regulatory changes as the main factor behind its exit.
The email stated:
“We are discontinuing OKX services in Nigeria after recent changes in local laws and regulations. This is based on our ongoing assessment of policies in each market we serve.”
OKX has provided guidance to users as it begins to wind down its operations in Nigeria.
According to Coinpedia, starting August 16, OKX customers will be unable to initiate new trading positions or utilize services within Nigeria.
Users are advised to close their P2P, margin, futures, and options positions, redeem all assets from Grow products, and transfer them out of OKX to their preferred wallets.
Crypto firms' struggle in Nigeria
OKX is not the first cryptocurrency exchange to cease operations in Nigeria.
In February, Binance was charged with money laundering and tax evasion, which resulted in a ban in April.
Other prominent exchanges, such as Coinbase, are prohibited from operating in Nigeria.
The government justifies these bans as measures to protect the local currency, the naira.
KuCoin suspends Naira Card, other services
In related news, Legit.ng reported that KuCoin, a cryptocurrency exchange, has announced the suspension of its naira card and peer-to-peer naira services.
This decision followed recent advice from the Securities and Exchange Commission urging cryptocurrency exchanges to cease trading in naira.
Although no specific timeline was provided, KuCoin assured customers they would be notified when these services are reinstated.
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Source: Legit.ng
