Cryptocurrency Exchange OKX Ceases Operations in Nigeria
Cryptocurrency exchange OKX has announced its decision to cease serving customers from Nigeria due to serious issues with local regulatory authorities. This news came as a surprise to many users, however, the platform began scaling back its operations in the Nigerian market two months ago.
Official notification and measures taken by the exchange
On July 17, OKX sent a notification to all its Nigerian users about the service termination, explaining its actions as «recent changes in local laws and regulations.» According to this notification, starting from August 16, 2024, users from Nigeria will no longer be able to use the platform’s main functions, except for closing open positions and withdrawing funds.
A representative from OKX clarified in a comment to The Block that as of August 30, users from Nigeria will lose access to their accounts on the platform. However, their remaining funds will be protected and guaranteed.
History of regulatory conflicts and restrictions
OKX’s measures to limit operations in Nigeria began in May 2024, when the exchange suspended withdrawals in the local currency, the Naira. This decision was made in light of growing issues with regulators. The platform faced accusations from the Nigerian government, which accused the largest crypto exchange Binance of manipulating the Naira exchange rate, money laundering, and tax evasion.
Following this incident, Nigerian authorities blocked access to all major centralized crypto exchanges (CEX). In April, the Central Bank of Nigeria officially debunked the ban on banks conducting transactions with crypto exchanges, but this did not help improve the situation.
Binance’s reaction and further developments
In response to pressure from Nigerian authorities, Binance announced the discontinuation of Naira support in its products and recommended users to withdraw fiat funds or convert them to USD-pegged stablecoins. Subsequently, the Economic and Financial Crimes Commission (EFCC) of Nigeria demanded that Binance disclose information about users, drawing additional attention to the situation.
The events in February also added tension: two senior Binance employees, Nadim Anjavralla and Tigran Gambaryan, were arrested in Nigeria. Gambaryan’s condition worsened in custody to the point where it caught the attention of U.S. officials. They called on President Joe Biden to consider the situation as a hostage-taking act.
Closure of offices and cessation of operations in India
In addition to Nigeria, since May 2024, OKX has also suspended its operations in the Indian market. The reasons for closing Indian operations are similar: issues with local regulatory requirements and obstacles. This decision reflects a broader trend among cryptocurrency platforms facing increased regulatory scrutiny in various countries.
Conclusion
OKX’s decision to cease operations in Nigeria highlights the growing complexity and uncertainty in the cryptocurrency industry in light of increasing pressure from regulators. Users of the platform will need to adapt to new conditions and seek alternative ways to manage their cryptocurrency assets.
