Cryptocurrency exchange OKX has informed its Nigerian clients that they have until August 16 to close their positions as the exchange is ceasing operations in the African country due to local regulations.
In an emailed statement dated July 17, which was obtained CryptoSlateOKX informed users that they will no longer be able to open new positions or use services on the platform, except for withdrawals and closing existing positions.
OKX assured users that their funds remain safe and accessible. However, they must withdraw these funds by August 30, 2024. After that date, users will need to contact customer support to take action on their account.
The announcement sparked concern among Nigerian cryptocurrency users, who took to social media platform X to express their displeasure. OKXHelpDesk responded by saying that the platform cannot provide KYC (know your customer) services to Nigerian users.
The statement said:
“Hi, We are currently unable to offer KYC verification services for Nigeria. Any updates regarding licensing will be shared on our official channels. Stay connected with us for any future announcements on this matter, thank you!”
The move follows OKX’s decision to withdraw its peer-to-peer services for Nigerian users and remove the local fiat currency, the Nigerian naira (NGN), from its platform in May.
OKX has not responded yet CryptoSlate request for additional comment when the article goes to press.
Challenges of Cryptocurrency Exchanges in Nigeria
OKX’s decision follows a recent crackdown on cryptocurrency platforms in Nigeria.
Earlier this month, KuCoin notified its Nigerian users of a 7.5% Value Added Tax (VAT) on all transactions. KuCoin cited an update to regulations in Nigeria as the reason for the change.
In addition, Binance is facing legal action from Nigerian authorities for money laundering and tax evasion. One of the exchange’s executives, Tigran Gambaryan, is currently being held at the Kuje Correctional Center in Abuja, despite his deteriorating health and growing international calls for his release.
Meanwhile, Nigerian authorities say the moves are part of a broader effort to bring the growing industry into compliance with regulations.
