OKX, a prominent global cryptocurrency exchange app known for its security and reliability, has announced its decision to cease operations in Nigeria due to recent changes in local regulatory frameworks.
This move follows similar actions by other cryptocurrency companies, including Binance, one of the world’s largest exchanges, which have restricted the ability to purchase USDT and USDC stablecoins with Naira amidst increased regulatory scrutiny from the Central Bank of Nigeria (CBN).
In an email titled “Action required: Notice regarding your account,” OKX informed its Nigerian customers of the decision, stating, “We are discontinuing OKX services in Nigeria in response to recent changes in local laws and regulations.
This decision is based on our ongoing assessment of regulatory policies in each market we operate.”
Effective August 16, 2024, Nigerian users will no longer be able to open new positions or access most services on the OKX platform, except for withdrawals and the closure or redemption of existing positions.
OKX has advised users to review their accounts and take necessary actions before 12:00 am (PST) on August 16, 2024.
The exchange recommends that users close all P2P, margin, perpetual, futures, and options positions, as well as redeem USDT, DAI, and EURT spot orders. Additionally, users are urged to withdraw all assets from Grow products, including Earn, Loan, and Jumpstart, and transfer their assets to a wallet of their choice.
After August 16, 2024, users will only be able to withdraw their assets from the OKX platform and will no longer be able to deposit or conduct transactions.
OKX emphasizes the importance of withdrawing funds to private wallets or other third-party platforms before 12:00 am (PST) on August 30, 2024. Any account-related actions after this date will require users to contact customer service.
Despite these changes, OKX reassures users that their funds will remain secure and accessible within their accounts but advises compliance with withdrawal deadlines to avoid potential restrictions as per its Terms of Service and local regulations.
For further assistance, Nigerian users are encouraged to contact OKX support, while those based outside Nigeria should update their account information accordingly.
The decision by OKX and other cryptocurrency exchanges to scale back operations in Nigeria reflects the evolving regulatory landscape surrounding digital currencies in the country.
Regulatory authorities have cited concerns over speculative trading and potential financial misconduct linked to cryptocurrency platforms, prompting increased scrutiny and regulatory measures.
Recent developments include legal actions against executives of major exchanges like Binance, highlighting ongoing regulatory challenges and the government’s efforts to enforce compliance with financial laws.
This decision by OKX underscores the complexities facing the cryptocurrency sector in Nigeria amid shifting regulatory dynamics and underscores the broader implications for digital asset users and investors in the region.
