OKX to Halt Operations in Nigeria from August 16

Seychelles-based crypto exchange OKX has announced its plan to halt operations in Nigeria starting on August 16th. The notice was sent via email to all Nigerian users on July 17th. According to the notice seen by CoinTab, the crypto exchange explained that strict crypto regulations from the Nigerian government triggered the decision.

“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,” the email stated.

OKX to Discontinue in Nigeria

OKX urges local users to withdraw their funds from all products they have invested in. These include margin, perpetual, futures, and options positions. All funds in OKX’s Grow products, like Earn, Loan, and Jumpstart, must be withdrawn from the exchange and moved to a separate crypto trading platform.

Although the exchange allows users to withdraw their funds until August 16th, it includes an extension until August 30th at 12:00 AM (PST). After that date, Nigerian users must contact a customer care agent before accessing their funds. The email cautioned that “remaining balances may be subject to further restrictions” per its terms of services and local regulations.

OKX is one of the largest crypto exchanges globally, with a market capitalization of over $17.6 billion at press time. Other crypto exchanges may emulate its action to seize operations in Nigeria. If this plays out, it will adversely affect over 22 million local crypto users owning at least one cryptocurrency.

More Stricter Measures in Nigeria

Despite formerly lifting the ban on crypto activities in the country, the Nigerian government has imposed a strict regulatory stance on the digital asset industry. Admittedly, the African country remains committed to fighting illegal operations involving cryptocurrencies. Still, it has taken severe measures toward the asset class.

Recall that OKX halted the peer-to-peer (P2P) feature for Nigerian traders earlier this year. This coincided with the African country probing Binance over claims that the exchange facilitated P2P traders who manipulated the dollar-to-naira exchange rate. Around the same period, Nigeria’s sovereign bank ordered commercial banks to discontinue crypto withdrawals for local traders.