OKX to Cease Operations in Nigeria by Mid-August Due to Local Regulations

Crypto exchange OKX has announced its decision to cease operations in Nigeria by August 16, 2024, citing local regulatory issues. OKX informed Nigerian clients that they must close their positions and withdraw their funds by August 30. The announcement highlights the ongoing challenges faced by crypto platforms in adhering to local regulations.

OKX notified users that they would no longer be able to open new positions or access most services on the platform. Users can still withdraw funds and close existing positions until the specified deadline. OKX assured its clients that their funds remain secure and accessible during this period. After August 30, users needing account-related actions will have to contact customer service directly. The exchange emphasized that it cannot provide know-your-customer (KYC) services for Nigerian users, further limiting its operations in the country.

The announcement has sparked concern among Nigerian crypto enthusiasts. Many users have expressed their frustrations on social media platform X. The cessation of OKX services in Nigeria follows the platform’s earlier decision to remove peer-to-peer services for Nigerian users. 

Additionally, in May, OKX removed the Nigerian naira (NGN) from its platform, reflecting the increasing regulatory pressures in the region. The exchange’s exit from Nigeria is a significant development for local users, who must now seek alternative platforms for their cryptocurrency needs.

OKX has faced several security challenges in recent months. On June 9, cybersecurity firm SlowMist revealed that two OKX exchange accounts were hacked using similar techniques. The hacks involved SMS risk notification alerts sent from “Hong Kong,” with new API keys created for withdrawal and trading capabilities. These incidents have raised concerns about the platform’s security measures. Users claimed that the SMS notification system was breached, leading to significant thefts. This issue underscores the need for robust security protocols as the number of crypto thefts continues to rise.