Popular crypto exchange, OKX, has announced it will be shutting operations in Nigeria in August 2024.
According to an email sent to its Nigerian customers on July 18 2024, this move is due to unfavourable regulatory conditions in Nigeria. Customers are expected to withdraw their funds from OKX on or before August 16 2024.
“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. From August 16, 2024, our customers will no longer be able to open any new positions or access any services on the platform, with the exception of withdrawals and closing/redemption of open positions. We request you to please review your account and complete applicable steps by 12:00 am (PST) on August 16, 2024.”
– OKX email to it users
OKX was one of the exchanges that suspended some of its services, including P2P, as the federal government clamped down on crypto firms earlier in 2024.
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“There was a meeting of crypto founders on Tuesday [February 27 2024] morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told a local… pic.twitter.com/iiYBuYrpOu
— BitKE (@BitcoinKE) February 29, 2024
Exchanges operating in the country have been under scrutiny as authorities believe that crypto platforms facilitate speculation and potential manipulation of exchange rates. Coinbase, Quidax, and Binance were also affected.
The Nigerian Securities and Exchange Commission (SEC) has recently issued a notice asking local crypto firms to apply for registration under its Accelerated Regulatory Incubation Program (ARIP) in less than 30 days.
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Following the 30-day-period, the Commission indicated that it would commence enforcement action against any operating VASP that fails to comply with the directives.… pic.twitter.com/ThvMC4MwFQ
— BitKE (@BitcoinKE) June 22, 2024
The registration process under ARIP involves a set of eligibility requirements to be fulfilled by operators:
- Be incorporated and have an office in Nigeria and its Chief Executive Officer/Managing Director or its equivalent shall be resident in Nigeria
- Be performing investments and securities business
- Be seeking registration or have pending virtual asset-related applications with the Commission
Applicants are required to also show satisfactory provisions regarding the protection of investors and public interest, among others. Under ARIP, the SEC wants to register all virtual asset operators while it continues to evaluate the sector and ammend regulations periodically.
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Since the introduction of ARIP, one crypto exchange, KuCoin, announced it will start collecting a 7.5% value-added tax on trading fees from its Nigerian users starting from July 8 2024.
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