OKX to Cease Operations in Nigeria by August 2024
Popular cryptocurrency exchange OKX has announced that it will be shutting down its operations in Nigeria by August 2024. In an email sent to its Nigerian customers on July 18, 2024, the exchange cited unfavorable regulatory conditions as the primary reason for this decision.
Customers have been advised to withdraw their funds from OKX on or before August 16, 2024.
“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,” the email from OKX stated.
Earlier in 2024, OKX had already suspended some of its services, including peer-to-peer (P2P) trading, in response to a crackdown on crypto firms by the Nigerian federal government.
The crackdown stemmed from concerns by authorities that crypto platforms could facilitate speculation and potential manipulation of exchange rates. Other major exchanges, including Coinbase, Quidax, and Binance, have also been affected by these regulatory actions.
The Nigerian Securities and Exchange Commission (SEC) recently issued a notice requiring local crypto firms to apply for registration under its Accelerated Regulatory Incubation Program (ARIP) within 30 days. The ARIP registration process includes several eligibility requirements for operators:
– Be incorporated and have an office in Nigeria, with the CEO or equivalent residing in Nigeria.
– Be engaged in investments and securities business.
– Have pending virtual asset-related applications with the Commission or seek registration.
Applicants must also demonstrate satisfactory provisions for investor and public interest protection, among other criteria. The SEC aims to register all virtual asset operators while continuously evaluating the sector and amending regulations as needed.
In response to the introduction of ARIP, KuCoin, another crypto exchange, announced it would begin collecting a 7.5% value-added tax on trading fees from its Nigerian users starting from July 8, 2024.
