Cryptocurrency exchange OKX is discontinuing its services in Nigeria due to what it termed as changes in local regulations, Cointelegraph reported, citing emails sent to users. This surprise announcement followed months of gradual service reduction, culminating in a complete exit by mid-August.

A Complete Suspension of Operations

In the email sent to clients in Nigeria on July 17, the crypto exchange specified that all services would cease by August 16. After this deadline, users will only be able to access the platform to withdraw funds or close positions, marking a complete suspension of the exchange's operations in the country.

OKX suspended naira withdrawals in May 2024, citing regulatory concerns. This occurred amid accusations by the Nigerian government against rival Binance, which was charged with manipulating the country's fiat currency, money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term, and tax evasion.

Subsequently, the government blocked access to major centralized exchanges, leading Binance to cease its naira services and give users a short window to withdraw funds or convert to dollar-denominated stablecoins.

Despite these measures, Nigeria's Economic and Financial Crimes Commission intensified its scrutiny, demanding that Binance disclose user information for all individuals who used the platform for trading. This regulatory pressure appears to be part of a broader effort to control and monitor cryptocurrency activities within the country.

Detainment of Binance Executives

The situation escalated earlier this year when Nigerian authorities detained Binance executives Nadeem Anjarwalla and Tigran Gambaryan in February 2024. The case has garnered the interest of US lawmakers, and the situation could strain diplomatic relations between Nigeria and the United States.

Elsewhere, OKX withdrew its license application to provide virtual asset services in Hong Kong in May and announced that it would suspend centralized crypto trading services for users in the region. The company said it would discontinue its centralized crypto trading services for Hong Kong residents by the end of May.

However, the exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term assured users of the safety of their assets, saying their assets were not unaffected. The company added that the decision to withdraw the license application followed an evaluation of its business strategy. Users in Hong Kong were given up to August 31, 2024, to withdraw assets from their OKX accounts.