OKX, a cryptocurrency exchange has announced plans to stop operations in Nigeria starting August 16, 2024.
The decision was communicated to Nigerian users via email on Wednesday, citing unfavorable government policies as the reason.
The exchange has instructed its Nigerian customers to withdraw their funds from the platform by the specified date.
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.
“From August 16, 2024, our customers will no longer be able to open any new positions or access any services on the platform, with the exception of withdrawals and closing/redemption of open positions
“We request you to please review your account and complete applicable steps by 12:00 a.m. (PST) on August 16, 2024.”
Crypto clapdown in Nigeria
In May, OKX disabled the peer-to-peer function for Nigerian users and removed the naira from its platform, responding to continued crackdowns on cryptocurrency platforms by Nigerian authorities.
In a brief statement shared on X at the time, OKX announced, “Hi there, trading in naira is no longer available on our platform due to a change in local market requirements. However, we want to assure you that you can still engage in P2P trading using other currencies.”
This move makes OKX the second crypto platform, after Binance, to halt its P2P function for Nigerian users. Peer-to-peer function (P2P) enables users, both buyers and sellers, to trade directly without involvement from intermediaries.
In February, the largest cryptocurrency platform disabled its peer-to-peer (P2P) function and exited the Nigerian market following the blocking of its website.
The government had accused crypto exchanges of manipulating foreign exchange, contributing to the devaluation of the Naira.
Subsequently, two Binance officials, Tigran Gambaryan and Nadeem Anjarwalla, were arrested after arriving in Nigeria to engage with government officials.
Anjarwalla, Binance’s Africa regional manager, escaped custody on March 22 and left the country, while Gambaryan remains detained and is undergoing trial.
Binance and its executives are currently facing separate legal actions filed by the Federal Inland Revenue Service (FIRS) for alleged tax evasion and by the Economic and Financial Crimes Commission (EFCC) for charges related to money laundering and foreign exchange violations.
The Binance executives have also filed a lawsuit asserting their fundamental rights against Nigerian government agencies, alleging a violation of their constitutional right to liberty.