Regulation
Cryptocurrency Exchange OKX to Shut Down Services in Nigeria in August 2024 Due to Unfavorable Regulatory Conditions – BitKE
Popular crypto exchange, OKX, has announced that it will shut down its operations in Nigeria in August 2024.
According to an email sent to its Nigerian clients on July 18, 2024, the decision is due to unfavorable regulatory conditions in Nigeria. Clients should withdraw their funds from OKX no later than August 16, 2024.
“We are discontinuing OKX services in Nigeria following recent changes in local laws and regulations. This decision is based on our ongoing assessment of the policies of each market we serve. As of August 16, 2024, our clients will no longer be able to open new positions or access any services on the platform, except for withdrawals and closing/buying back open positions. We kindly request that you verify your account and complete the applicable steps before midnight (PST) on August 16, 2024.”
– OKX email to its users
OKX was one of the exchanges that suspended some of its services, including P2P, due to the federal government Cryptocurrency companies cracked down earlier in 2024.
REGULATION | Cryptocurrency Exchanges to Stop Selling StableCoin in Nigeria Amid Apparent Crackdown
“There was a meeting of cryptocurrency founders on Tuesday [February 27 2024] “This morning, a number of them agreed to suspend transactions on their platform,” a person present at the meeting told a local correspondent… pic.twitter.com/iiYBuYrpOu
— BitKE (@BitcoinKE) February 29, 2024
Exchanges operating in the country have come under scrutiny as authorities believe cryptocurrency platforms facilitate speculation and potential manipulation of exchange rates. Coinbase, Quidax, and Binance have also been affected.
The Nigerian Securities and Exchange Commission (SEC) recently issued a notice asking local cryptocurrency companies to apply for registration under its Accelerated Regulatory Incubation Program (ARIP) in less than 30 days.
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At the end of the 30-day period, the Commission indicated that it would take enforcement action against any VASP operating that did not comply with the guidelines.… pic.twitter.com/ThvMC4MwFQ
— BitKE (@BitcoinKE) June 22, 2024
The registration process under ARIP involves a set of eligibility conditions to be met by operators:
- Be incorporated and have an office in Nigeria and its Managing Director/Chief Executive Officer or equivalent must be resident in Nigeria
- Be able to make investments and transactions in securities
- Be seeking registration or have pending applications related to virtual assets with the Commission
Applicants must also present satisfactory provisions regarding investor protection and public interest, among others. ARIPThe SEC wants to register all virtual asset operators while continuing to evaluate the industry and periodically amend regulations.
See also
Since the introduction of ARIP, one cryptocurrency exchange, KuCoin, announced that it would start collecting a 7.5% value-added tax on transaction fees from its Nigerian users starting July 8, 2024.
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