OKX will exit Nigeria by August 16, 2024, due to recent regulatory changes, restricting users to withdrawals or closing positions.
Nigerian authorities detained Binance executives amid allegations of currency manipulation and tax evasion, intensifying regulatory scrutiny.
US lawmaker Rich McCormick suggests treating Gambaryan’s detention in Nigeria as a hostage situation, potentially straining US-Nigeria relations.
Prominent cryptocurrency exchange OKX said on July 17 that recent changes in local laws and regulations may cause it to leave Nigeria by August 16, 2024. Consequently, Nigerian users must access the platform’s features before the deadline.
After August 16, users can only withdraw funds or close out positions due to the increasingly stringent regulatory landscape in Nigeria impacting major cryptocurrency exchanges.
OKX discontinuing their service in Nigeria is a big disappointment. This govt just wants to take food from our table but we wont panic. pic.twitter.com/xQjmd4JPo6
— King.sol (@teddi_speaks) July 17, 2024
Impact of Regulatory Shifts
OKX’s move follows its suspension of Naira withdrawals in May 2024. This action was a response to regulatory concerns after the Nigerian government accused Binance of currency manipulation, money laundering, and tax evasion. These accusations led to the blocking of access to major centralized exchanges, including Binance.
Binance subsequently ceased Naira services in Nigeria, giving users a short window to withdraw funds or convert to dollar-denominated stablecoins. Due to the increasingly stringent regulatory landscape in Nigeria affecting major cryptocurrency exchanges, users will only be able to withdraw funds or close out positions after August 16.
Ongoing Legal and Humanitarian Concerns
This investigation intensified when Nigerian authorities detained Binance executives Nadeem Anjarwalla and Tigran Gambaryan in February 2024. The detention of Gambaryan has drawn international attention, particularly from the United States.
In May, Gambaryan’s wife called for medical attention for her husband due to his deteriorating health. This situation has attracted the interest of US lawmakers, emphasizing the humanitarian aspects of the case.
Potential Diplomatic Repercussions
Recently, Nigerian court officials issued an arrest warrant for Dr. Abraham Ehizojie, the prison’s medical doctor where Gambaryan is held. Dr. Ehizojie failed to appear in court to provide a medical report on Gambaryan’s condition. This legal development could strain relations between the Nigerian and US governments.
On July 10, US lawmaker Rich McCormick submitted a resolution to the House Committee on Foreign Affairs. This resolution recommends treating Gambaryan’s detention as a hostage situation if not resolved by mid-July. Such a stance could lead to significant diplomatic tensions between the two nations.
OKX’s decision to halt services in Nigeria underscores the profound impact of regulatory changes on cryptocurrency exchanges. The ongoing legal and humanitarian concerns further complicate the situation, potentially affecting international relations and the future of cryptocurrency operations in Nigeria.
Read Also:
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