OKX, a prominent cryptocurrency exchange, has announced the discontinuation of its services in Nigeria due to recent changes in local regulations.
According to reports, OKX notified its Nigerian users via email on July 17 that all operations would cease by August 16.
Following this deadline, users will only have access to the platform to withdraw funds or close positions, marking a complete suspension of OKX’s activities in the country.
The decision follows OKX’s suspension of naira withdrawals in May 2024, citing regulatory uncertainties.
The move coincided with similar actions by the Nigerian government against rival exchange Binance, which faced allegations of fiat currency manipulation, money laundering, and tax evasion.
As a result, access to major centralized exchanges was restricted, prompting Binance to halt naira services and provide users with a brief window to withdraw funds or convert to dollar-backed stablecoins.
Despite these measures, Nigeria’s Economic and Financial Crimes Commission escalated its oversight, demanding user information from Binance.
The regulatory scrutiny appears part of broader efforts to regulate and monitor cryptocurrency activities within Nigeria.
Earlier this year, Nigerian authorities detained Binance executives, sparking international interest and potentially straining diplomatic relations with the United States.
Meanwhile, OKX withdrew its license application to offer virtual asset services in Hong Kong in May and ceased centralized crypto trading services for Hong Kong residents by the end of the same month.
The company assured users that their assets remained secure and attributed the decision to strategic business evaluations.
As OKX prepares to exit Nigeria, affected users are urged to manage their accounts before the August 16 deadline, emphasizing the ongoing challenges faced by cryptocurrency exchanges amidst evolving regulatory landscapes worldwide.
In another development, the naira has extended its losing streak to a fifth consecutive day, plunging to its lowest point since March despite efforts by the Central Bank of Nigeria (CBN) to stabilize the currency amid high seasonal demand for dollars and lingering investor scepticism.
Closing at 1,577.29 per dollar on Monday this week, according to FMDQ, the naira’s decline from 1,563.8 on Friday underscores ongoing challenges despite the CBN’s sale of $122.7 million to local dealers between July 10-11.
Since easing exchange controls last year, the naira has depreciated by approximately 70% against the dollar, making it the world’s second-worst-performing currency this year after the Lebanese pound.
