Crypto exchange OKX to discontinue services for Nigerian users

OKX, one of the world’s most secure and trusted cryptocurrency exchange apps, has announced its decision to discontinue services in Nigeria due to recent changes in local laws and regulations.

With this decision, OKX joins a few other crypto companies, including Binance, one of the largest global exchanges, in ceasing the ability for users to buy USDT and USDC stablecoins with Naira following increased scrutiny from the Central Bank of Nigeria (CBN).

In an email to its Nigerian customers titled “Action required: Notice regarding your account,” OKX stated, “We are discontinuing OKX services in Nigeria after recent changes in local laws and regulations.

This is based on our ongoing assessment of policies in each market we serve.”

Starting August 16, 2024, customers will no longer be able to open new positions or access any services on the platform, except for withdrawals and the closing or redeeming of open positions.

Users are requested to review their accounts and complete necessary actions by 12:00 am (PST) on August 16, 2024.

OKX advises users with trades on the platform to close any P2P, margin, perpetual, futures, and options positions and orders; close any USDT, DAI, and EURT spot orders; redeem all assets from Grow products, including Earn, Loan, and Jumpstart; and transfer their assets out of their OKX account to a wallet of their choice.

After August 16, 2024, users will only be able to withdraw their assets and will not be able to deposit or transact otherwise.

Although funds will remain secure and accessible in user accounts, OKX highly encourages withdrawals to private wallets or accounts on other third-party platforms by 12:00 am (PST) on August 30, 2024. After this date, users will have to contact customer service for any account-related actions.

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OKX strongly urges Nigerian users to withdraw or transfer funds before these deadlines, as remaining balances may be subject to further restrictions in accordance with its Terms of Service and local laws.

Users with questions or needing assistance should contact the support team, and those not based in Nigeria should update their information on the platform.

Earlier this year, a meeting of crypto founders led to several agreeing to suspend trades on their platforms. Binance and other exchanges have faced regulatory scrutiny, with regulators asserting that crypto platforms encourage speculators to manipulate exchange rates. Users have reported difficulties accessing websites of exchanges like Coinbase, Quidax, and Binance.

Increased volatility in Nigeria’s FX markets has triggered several policy actions. Central Bank Governor Olayemi Cardoso claimed that “$26 billion has passed through Binance Nigeria from sources and users with no identity.”

The Digital Currency Coalition asserted in a presentation that speculative trading on Binance’s peer-to-peer offering significantly contributed to the “113.1 percent devaluation of the naira against USDT since February 2023.”

Meanwhile, Binance Holdings Limited’s executive, Tigran Gambaryan, was recently brought to the Federal High Court in Abuja in a wheelchair.

Gambaryan, facing a money laundering charge alongside Binance, stood up from the wheelchair and walked into the dock.

Justice Emeka Nwite had ordered a bench warrant for a medical doctor at Kuje Correctional Centre for failing to produce Gambaryan’s medical report or appear in court.

The Nigerian government has accused Binance and its executives of allegedly conspiring to conceal the origin of financial proceeds from unlawful activities in Nigeria, including $35.4 million.

This offense is contrary to Section 21(a) and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.

Justice Nwite ordered the Nigerian Correctional Service doctor to produce the medical reports for Gambaryan and warned against non-compliance with court directives, stating the medical practitioner would have to appear in court if the report is not produced.