Crypto exchange, OKX, to discontinue service in Nigeria

Cryptocurrency exchange, OKX, has announced plans to discontinue its service in Nigeria effective from August 16, 2024. 

The company disclosed this in an email message to its Nigerian users on Wednesday citing unfavourable policies by the Nigerian government.

With this, OKX has asked its Nigerian customers to withdraw their funds from the platform on or before the said date.  

This development follows a similar action in March by Binance, whose executives are currently facing trial in Nigeria. 

According to the company, from August 16, Nigerian customers will no longer be able to open any new account on the platform. 

What the exchange is saying 

In the email to its Nigerian customers, a copy of which was seen by Nairametrics, the company wrote: 

“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 am (PST) on August 16, 2024.”  

Backstory 

Earlier in May, OKX turned off the peer-to-peer function for Nigerian users and removed the naira from its platform amid sustained clampdowns on cryptocurrency platforms by Nigerian authorities.  

“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,” OKX said in a terse statement shared on X on at that time. 

With that action, OKX is the second crypto platform to disable its P2P function for Nigerian users, following Binance’s disabling of P2P for Nigerian users. 

Peer-to-peer function (P2P) allows users, buyers, and sellers to trade without third-party interference.  

• In February, the biggest cryptocurrency platform disabled its P2P function and exited the Nigerian market after its website was blocked. 

• This came after the government accused crypto exchanges in the country of manipulating foreign exchange in the country leading to the declining value of the Naira.  

• Thereafter, two officials of Binance, who came on a mission to seek understanding with the government, Tigran Gambaryan and Nadeem Anjarwalla, were arrested. Nigeria. Anjarwalla, Binance’s Africa regional manager, escaped from lawful custody on March 22 and flew out of the country, while Gambaryan remains in custody facing trial. 

• Binance and its executives are currently facing two separate suits by the Federal Inland Revenue Service (FIRS) and the Economic and Financial Crimes Commission (EFCC); the former bordering on tax evasion while the latter on money laundering and foreign exchange contravention. 

• The Binance executives have also instituted a fundamental rights case against agencies of the Nigerian government, citing a violation of their constitutional right to liberty.