OKX, a cryptocurrency exchange, has announced its withdrawal from Nigeria. Starting from July 17, 2024, all services provided to Nigerian customers will be terminated. This decision is a result of recent modifications in local legislation and regulations.
The decision comes after Naira withdrawals were halted in May 2024, also due to regulatory concerns. Subsequently, the Nigerian government levied allegations against Binance, asserting that the crypto exchange had engaged in the manipulation of the nation’s legal tender, participated in illicit money laundering activities, and evaded tax obligations earlier in the year.
The Nigerian authorities took measures against Binance, such as restricting access to prominent centralized exchanges. As a result, Binance suspended its Naira services and provided users with a specific timeframe to either withdraw their assets or convert them into stablecoins denominated in dollars.
Despite these actions, the Economic and Financial Crimes Commission (EFCC) of Nigeria has increased its investigation by requesting Binance to reveal user data for all individuals who engaged in trading on the site.
In February 2024, the enforcement actions against Binance went beyond financial measures and resulted in the apprehension of Nadeem Anjarwalla and Tigran Gambaryan, who are executives of the firm.
The United States has recognized the humanitarian dimension of Gambaryan’s arrest, prompting U.S. lawmaker Rich McCormick to suggest that if the matter is not handled quickly, Gambaryan’s detainment should be treated as a hostage scenario.
The departure of OKX from Nigeria, along with the current regulatory scrutiny and legal challenges encountered by Binance, presents a difficult situation for the cryptocurrency business in Nigeria.
The assertive position adopted by Nigerian authorities exemplifies a wider endeavor to oversee and govern the cryptocurrency industry in the country. Although regulatory control is essential for preventing financial crimes, too strict restrictions can impede the growth and innovation in the emerging crypto industry.
With the impending deadline for OKX’s departure, Nigerian users are confronted with the task of transferring their assets and adjusting to the altered regulatory landscape.
