Crypto exchange OKX has disclosed that it will be exiting Nigeria because of local laws and regulatory challenges.
The exit follows similar moves by other crypto exchanges, including Binance which is currently undergoing trial in the country.
OKX told customers in an email on Wednesday that from August 16, users would no longer be able to open new trading positions or access services, but they would still be able to withdraw funds and close existing positions.
“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,” the exchange said.
OKX stated that users must close all open positions and orders in P2P, margin, perpetual, futures, and options markets, cancel any outstanding spot orders in USDT, DAI, and EURT, redeem assets from Grow products, including Earn, Loan, and Jumpstart, and transfer assets to a wallet of their choice.
It added, “We request you to please review your account and complete applicable steps by 12:00 am (PST) on August 16, 2024.”
Nigeria’s government has been tightening its grip on the crypto market, with the Central Bank of Nigeria directing banks to identify and freeze accounts involved in crypto transactions.
The CBN also prohibited regulated financial institutions from accepting or facilitating cryptocurrency payments, contradicting an earlier ban lifted in December 2023.
The regulatory environment for cryptocurrencies in Nigeria remains uncertain, with many experts calling for clearer guidelines and frameworks to govern the industry.
In May, the SEC directed crypto exchanges to halt naira peer-to-peer trading.
According to OKX, it has complied by disabling the peer-to-peer function for Nigerian users and delisting the naira from its platform.
Aside from OKX, other global crypto exchanges are facing a challenging environment in Nigeria.
Recently, KuCoin announced that it would start charging a 7.5 per cent value-added tax on top of its 0.1 per cent transaction fees for Nigerian users.
The VAT applies to various transactions on its platform.
KuCoin attributed the move to a regulatory update in Nigeria.
