Cryptocurrency exchange OKX is pulling out of Nigeria, citing challenges with local regulations. In an email sent to Nigerian users on July 17th, the exchange announced the termination of its services in the country, effective August 16th, 2024.

This decision follows a period of increasing tension between Nigerian authorities and cryptocurrency platforms. Earlier this year, the Nigerian Securities and Exchange Commission (SEC) directed crypto exchanges to halt naira peer-to-peer (P2P) trading. OKX complied by removing the Nigerian naira (NGN) from its platform and disabling P2P functionality for Nigerian users.

The email attributed the exit to “recent changes in local laws and regulations.” This aligns with the broader regulatory crackdown on cryptocurrency activity in Nigeria. Binance, another major crypto exchange, faced similar issues earlier in 2024, including accusations from the Nigerian government and a demand for user information from the Economic and Financial Crimes Commission (EFCC). Binance subsequently ceased offering naira services and provided users with a brief window to withdraw funds.

OKX’s departure from Nigeria leaves users with a limited timeframe to manage their holdings. Until August 16th, they can access the platform for withdrawals and closing existing positions. However, opening new positions or utilizing other exchange services will no longer be possible.

This news signifies a setback for cryptocurrency adoption in Nigeria, a country with a significant user base. OKX’s exit, alongside the ongoing challenges faced by other exchanges, creates uncertainty for Nigerian crypto investors. With regulations still evolving, it remains to be seen how the future of cryptocurrency trading will unfold in the African nation.

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