Crypto exchange OKX to exit Nigeria August amid regulatory crackdown
TLDR
- OKX discontinuing services in Nigeria due to unfavorable government policies impacting cryptocurrency exchanges.
- Nigerian users unable to access their accounts starting August 16, but funds remain secure.
- Regulatory pressure prompting crypto exchanges like Binance and OKX to adjust services in Nigeria.
Global cryptocurrency exchange OKX is winding down services in Nigeria as of August 16, the company said in an email message to its Nigerian users on Wednesday citing unfavorable policies by the Nigerian government.
OKX customers in Nigeria will be barred from accessing their accounts from the stated date, while the exchange noted that their funds remain secure.
This comes after the crypto trading platform halted withdrawal services for the Nigerian Naira in May as the country tightened regulatory scrutiny on Binance and other centralized exchanges. Binance removed support for the naira in March.
Key Takeaways
The regulatory environment for cryptocurrencies in Nigeria remains uncertain, with many experts calling for clearer guidelines and frameworks to govern the industry. In May, the SEC directed crypto exchanges to halt naira peer-to-peer trading. In response, OKX has disabled the peer-to-peer function for Nigerian users and delisted the naira from its platform. In addition to OKX, other global crypto exchanges are also navigating a challenging environment in Nigeria. Recently, KuCoin announced it would start charging a 7.5% value-added tax (VAT) on top of its 0.1% transaction fees for Nigerian users. This VAT applies to various transactions on its platform, and KuCoin attributed the move to a regulatory update.
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