OKX, a leading cryptocurrency exchange, has decided to halt operations in Nigeria due to mounting regulatory challenges.
The company has issued a directive to its Nigerian clientele, advising them to withdraw their funds before August 30, after which access to their accounts may be restricted. This move follows a series of regulatory pressures that have seen other exchanges like Binance face accusations from the Nigerian government.
Withdrawal deadlines set for users
OKX has set specific deadlines for Nigerian users to close accounts and withdraw funds. Starting August 16, customers will not be permitted to open new accounts or positions and will lose access to various services offered by the exchange.
The firm urges all its users to ensure they have redeemed any open positions and transferred their assets to external wallets well before the midnight PST deadline on August 16. If missed, they have until August 30 to complete these transfers.
The decision to exit the Nigerian market is not surprising, considering the recent suspension of Naira withdrawals in May 2024 following a series of accusations by the Nigerian government against other crypto platforms. These accusations include engaging in financial misconduct such as money laundering and tax evasion.
OKX’s decision to pull out from Nigeria reflects a broader pattern of retraction from markets posing regulatory challenges, similar to its earlier exit from India in March due to the country’s stringent measures on digital assets. Meanwhile, some platforms like KuCoin continue to adjust their operations to maintain a presence in Nigeria, including implementing a 7.5% value-added tax on transaction fees to comply with local regulations.
Future steps for OKX and Nigerian Users
As OKX prepares to wind down its operations, the exchange has provided clear instructions for its users to safeguard their investments by transferring them from the platform. This proactive communication ensures that users are not caught off-guard and can manage their assets effectively in light of the impending restrictions.
This strategic move also highlights the shifting dynamics in the global cryptocurrency market, where compliance with local regulations becomes crucial for the sustained operation of trading platforms.