Cryptocurrency exchange OKX is leaving Nigeria, one of Africa’s biggest economies. And one of the biggest crypto markets globally.
The exchange said the move was due to the country’s constant regulatory crackdown. Let’s explore more about OKX.
OKX Ceases Operations in Nigeria Amid Regulatory Crackdown
OKX, in an email to Nigerian users, noted that users would no longer be able to open any new positions or access services on the platform from August 16th. Users can only withdraw and close positions after this date.
OKX urged Nigerian users to close P2P, options, futures, and margin positions. And redeem all assets from Grow Products before the due date. Users are to move all assets out of OKX to their preferred wallet.
It wrote, “After August 30, 2024, you will have to reach out to our customer service teams for any account-related actions. We strongly encourage you to withdraw or transfer funds before this date, as remaining balances may be subject to further restrictions by our Terms of Service along with local laws.”
Nigeria’s Hostile Crypto Environment
The move highlights the struggles of crypto companies to operate in the Nigerian market. Other exchanges, such as Binance, have stopped serving Nigerian users. In May, OKX disabled its peer-to-peer (P2P) service to Nigerian users to comply with local policies. It also removed the naira from its P2P market.
The move to disable P2P features for naira came after the Nigerian government accused crypto exchanges of manipulating foreign exchange. And cause the value of the naira to decline. In a shocking move, the Nigerian government arrested two Binance officials, Nadeem Anjarwalla and Tigran Gambaryan.
US lawmakers have expressed interest in this situation. Representative Rich McCormick recently called for a resolution on Gambaryan’s arrest, urging the US to treat it as a hostage scenario afterward.
Nigeria is reevaluating its blockchain technology policy in light of recent developments, suggesting that its stance on digital assets may change. The nation is exploring the possibility of a blockchain known as “Nigerium,” which would follow strict regional rules and regulations.
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