After August 16th this year, OKX users in Nigeria will no longer be able to trade cryptocurrencies within the platform as the company has decided to shut down its services on that date.
In emails sent to their users in Nigeria, OKX has cited that the decision was prompted by the government’s unfavorable policies for crypto platforms and tough regulation demands. OKX users in the country have been requested to close open positions and orders on the P2P platform, cancel any spot orders in USDT, DAI, and EURT, redeem and transfer their assets to their preferable wallets. Moreover, the platform has assured users that their funds will be accessible and withdrawable until August 30th, but every other service will be unavailable by 16th of that month. “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,” OKX stated.
“We request you to please review your account and complete applicable steps by 12:00 am (PST) on August 16, 2024,” the platform added.
The Central Bank of Nigeria has been tightening the noose on cryptos and associated fintechs in the West African nation, citing it as a strategy to save the ailing Naira. This has involved ordering banks to freeze any transactions with crypto platforms.
In May this year, the Federal government of Nigeria also ordered crypto platforms to cease peer to peer trading with the Naira. OKX said that even though it had delisted the Naira from its P2P function, the regulation environment for cryptos remain uncertain.
Another platform, Kucoin, yielded to the government’s leash and announced that it would charge 7.5% VAT on transactions for its Nigerian users.
Earlier this year, Binance halted its P2P services in the country and discontinued Naira exchanges as a response to the government’s claims that the platform was a haven for tax evaders and currency speculators. Meanwhile, its executives in the country remain charged for money laundering and tax evasion.
Some of the tougher regulations imposed by the Central Bank of Nigeria (CBN) include the Know-Your-Customer guidelines. The goal of the CBN over the past several months has been to scrap off secrecy and unregulated transactions in the financial space.
While the government acknowledges these actions as necessary in ensuring the financial security of its citizens, critics perceive it as the state overstepping its mandate.
If cryptos toe the line and yield to government control, they are likely to lose popularity. Take, for instance, the Nigerian government’s demand that Binance should provide the details of its users to determine their tax compliance. Any crypto user knows that this is a violation of the basic features that crypto is supposed to accommodate.
See Also:
How Nigeria’s Actions on Binance Will Hurt Africa
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