Unable to withstand regulatory pressure! OKX exits Nigerian market, users must withdraw funds by August 16th.

The latest announcement from the cryptocurrency exchange OKX indicates that the company has announced its exit from the Nigerian market. Local users are required to close all positions and withdraw all cryptocurrency assets by August 16th. Meanwhile, a senior executive of another exchange, Binance, has been detained by the local government for over four months, with the prison conditions deteriorating his health.

OKX to Exit Nigeria, Users Must Withdraw Funds by August 16

OKX revealed in an email sent to its Nigerian users yesterday, August 17, that it will be exiting the Nigerian market and ceasing all functions and services for Nigerian users.

OKX cited "recent changes in local regulations" as the reason for their exit and assured that users' funds are still safe and accessible for withdrawal:

Users can no longer open new positions or use any functions on the platform, only withdraw funds or close existing positions. All services will be terminated on August 16, 2024.

The abrupt change has caused concern among some local users, who expressed their dissatisfaction on X.

In May of this year, OKX suspended withdrawals in the local currency Naira (NGN) citing regulatory issues; prior to that, the exchange Binance had just announced its exit from Nigerian fiat services in March due to allegations of manipulation of the country's legal tender.

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Nigeria Cracks Down on Cryptocurrency Exchanges

Recently, the Nigerian government and regulatory authorities have been cracking down on cryptocurrency companies, including blocking websites of major cryptocurrency exchanges and requiring crypto firms to re-register as Virtual Asset Service Providers (VASPs) under a new regime within 30 days.

The detention of Binance executives Nadeem Anjarwalla and Tigran Gambaryan by authorities since late February has been the most high-profile incident, lasting over four months.

Reportedly, Binance has been charged by the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) with the following:

• Engaging in fiat exchanges and P2P market activities without regulatory approval

• Failing to pay Value Added Tax (VAT) and corporate income tax, aiding customers in tax evasion

• Allegedly manipulating local currency exchange rates

• Participating in money laundering

Nigeria Central Bank Accuses Binance: Illegally Operating Fiat Exchanges and P2P Markets

Weeks ago, another cryptocurrency exchange KuCoin notified its Nigerian users that they will start charging a 7.5% Value Added Tax (VAT) to local users, attributing the move to updates in local regulatory frameworks.

In response, Nigerian authorities claim that the enforcement actions are necessary measures to ensure compliance in the emerging industry.

IMF Suggests Nigeria Authorities Regulate Cryptocurrency Exchanges and Implement Anti-Money Laundering Measures Rather than Enforcing Strict Bans