OKX ceases operations in Nigeria amid regulatory hurdles
OKX ceases operations in Nigeria amid regulatory hurdles
OKX, one of the leading cryptocurrency exchanges, has announced its decision to cease operations in Nigeria due to regulatory challenges
The decision to exit the Nigerian market, effective August 30, 2024, marks a notable shift in the exchange's global strategy. The exchange's exit from Nigeria underscores the growing regulatory pressures facing crypto companies worldwide.
OKX cited local regulatory challenges as the primary reason for its withdrawal, affecting thousands of Nigerian users who will now have to move their assets off the platform, CoinGape reported.
In a July 17 email to its users, OKX provided instructions on how to close their accounts and withdraw their assets before the deadline, according to an X post by King.sol.
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"We are discontinuing OKX services in Nigeria due to recent changes in local laws and regulations," the company said. "This decision is based on our ongoing assessment of policies in each market we serve," the email said.
OKX also confirmed that it had already closed KYC verification for Nigerian users and advised them to stay tuned for further announcements.
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As of August 16, OKX users in Nigeria will no longer be able to open new trading positions or access services on the platform. However, they will still be able to withdraw funds and close existing positions. OKX stressed the importance of users redeeming all assets from Grow products and transferring assets from the exchange to preferred wallets before the cut-off date.
The exchange assured users that their funds will remain safe and accessible, but urged them to withdraw their assets by 12:00 a.m. (PST) on August 30, 2024. After that date, users will need to contact customer support for further action.
The regulatory environment in Nigeria has become increasingly stringent, reflecting a global trend of governments imposing stricter regulations on digital asset exchanges. Earlier this year, the Nigerian government intensified its crackdown, affecting other major exchanges such as Binance and Coinbase.
OKX's withdrawal from Nigeria mirrors its recent exit from the Hong Kong market, where the exchange also ceased crypto trading services to comply with local regulatory requirements.
As OKX winds down its operations in Nigeria, the focus will be on how effectively it manages the transition for its users.
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