Cryptocurrency Regulations Impact Operations in Nigeria

OKX, a cryptocurrency exchange, has decided to discontinue its operations in Nigeria due to increasingly strict local regulations impacting digital asset services. The announcement reflects the challenges faced by crypto companies in Nigeria amidst a crackdown on the sector.

In an email sent on July 17, OKX informed its users about the cessation of services in Nigeria, attributing the decision to recent regulatory changes. The exchange stated, “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.”

According to OKX, users have until August 16 to close their P2P, margin, futures, and options positions, withdraw assets from Grow products, and transfer funds to their preferred wallets.

This move follows similar actions by other cryptocurrency exchanges in Nigeria. Binance, for instance, faced a ban in April over allegations of money laundering and tax evasion. The Nigerian government has also prohibited operations of other major exchanges like Coinbase, citing measures to safeguard the local currency, the naira.

In related news, KuCoin has announced the suspension of its naira card and peer-to-peer naira services following guidance from the Securities and Exchange Commission. The exchange assured customers that they would be notified once these services resume, although no specific timeline was provided.

Despite these regulatory challenges, the cryptocurrency industry continues to evolve globally, adapting to regulatory landscapes while exploring opportunities for innovation and growth.