OKX exchange announces exit from Nigeria due to regulatory changes by local government.
Through an email to Nigerian customers on July 17, the exchange OKX announced that it will cease its services in Nigeria following recent changes in local laws and regulations. The email indicates August 16 as the deadline to access the platform’s features. After this date, Nigerian users will only be able to withdraw funds or close existing positions.
OKX assured users that their funds remain secure and accessible. However, the withdrawal of funds must occur by August 30, 2024. After August 30, users will need to contact customer service to obtain their funds.
The announcement comes following several moves by the Nigerian government aimed at increasing oversight on cryptocurrency exchanges. As early as last May, OKX had suspended withdrawals in Naira, the local currency, citing regulatory concerns. This decision came after government accusations against Binance for currency manipulation, money laundering, and tax evasion.
At the beginning of July, KuCoin notified its Nigerian users of the introduction of a 7.5% value-added tax (VAT) on all transactions, citing a regulatory update in the country as the reason for this change.
The new strategies of the Nigerian government suggest a stricter approach towards cryptocurrencies and exchanges, discouraging the establishment of companies in the sector within the country.
