- OKX is to cease all operations in Nigeria by mid-August.
- The exit follows months of service reductions, including suspending Naira withdrawals in May.
- Nigeria’s crypto crackdown reflects a national effort to oversee and regulate the industry with stricter measures.
Cryptocurrency exchange OKX is withdrawing from Nigeria, following changes in local regulations communicated to users through X and email.
This announcement marks the end of a series of service reductions over several months, leading to a full exit planned for mid-August.
No More Naira: OKX Exits Nigerian Market by August 16
In a letter shared on X by a user on July 17, OKX informed its Nigerian clients that it would terminate all services by Aug. 16. Beyond this date, the platform will only allow users to withdraw their funds or close their trading positions, effectively ceasing the exchange’s activities in Nigeria.
OKX had previously suspended withdrawals in Nigerian Naira in May 2024, attributing the decision to regulatory concerns. This decision occurred amid allegations the Nigerian government levied against the competing exchange, Binance. The government accused Binance of currency manipulation, money laundering, and evading taxes.
Following these accusations, the Nigerian government restricted access to major centralized exchanges, even prompting Binance to discontinue its Naira services and urging users to either withdraw their funds or switch to dollar-denominated stablecoins.
Amid these developments, Nigeria’s Economic and Financial Crimes Commission has intensified its scrutiny against crypto platforms, going as far as ordering Binance and other major exchanges to provide user data for all individuals who traded on the platform.
As part of this effort, the commission has also detained Binance executive Tigran Gambaryan since February, despite his lack of decision-making authority regarding the exchange’s operations in the country. During his latest court appearance, Gambaryan appeared frail, arriving in a wheelchair.
CBN Eases Crypto Ban, Imposes Strict Rules
In December 2023, the Central Bank of Nigeria (CBN) lifted a two-year prohibition that prevented banks from engaging with cryptocurrencies, citing that an absence of regulations posed greater risks to consumers and the government. However, the relaxation of this ban was accompanied by stringent guidelines aimed at regulating the digital asset market within Nigeria.
Under the new regulations, Nigerian banks are still prohibited from holding, trading, or transacting in virtual currencies on their own accounts. There are also restrictions on opening accounts for any entities intending to engage in crypto or digital asset business, although there are specific exceptions to this rule.
The guidelines stipulate that banks may only open Nigerian Naira-based accounts for digital asset transactions if these accounts comply with the regulatory framework and are used solely for this purpose. Additionally, the rules prohibit cash withdrawals from these accounts. Settlements or withdrawals related to crypto asset transactions must be conducted through a designated account and process, among other stipulated conditions.
