OKX, the world’s second-largest cryptocurrency exchange, will halt its services in Nigeria starting August 30.
Starting from this date, Nigerian users will be restricted from accessing their OKX accounts. However, the exchange assured that customers’ funds will remain secure.
This decision follows OKX’s suspension of withdrawal services for the Nigerian Naira in May, amid the country’s increased regulatory scrutiny on Binance and other centralized exchanges. Binance had already ceased supporting the naira in March.
Nigerian authorities filed criminal charges against Binance, accusing the exchange of money laundering and tax evasion, although the tax charges were later dropped. Tigran Gambaryan, Binance’s head of financial crime compliance and a former U.S. Internal Revenue Service agent, along with Binance regional executive Nadeem Anjarwalla, were detained upon their arrival in Nigeria in February.
While Anjarwalla managed to escape custody, Gambaryan remains detained in Nigeria and is reportedly suffering from deteriorating health due to malaria and pneumonia. Several U.S. lawmakers have urged the White House to take stronger action to secure Gambaryan’s release.
OKX selects Malta as MiCA hub
Elsewhere, OKX has chosen Malta as its hub for the Markets in Crypto Assets (MiCA) framework in the European Union.
The decision to select Malta was influenced by the country’s high regulatory standards and progressive approach to blockchain and cryptocurrency. OKX also cited its existing personnel and infrastructure on the Mediterranean island as factors in its decision.
Under the MiCA framework, OKX plans to offer spot trading, including pairs with the euro (EUR) and USD Coin (USDC), as well as buy, sell, convert, and staking services to eligible EU residents through its Malta entity. The MiCA framework, set to be fully effective on December 30, 2024, will allow crypto-asset exchanges to passport into EU countries and provide services across the entire region.
“We’ve established our MiCA hub in Malta because it will enable us to provide world-class products to a diverse range of customers across Europe,” said Erald Ghoos, OKX Europe General Manager-Designate.
OKX’s local entity, Okcoin Europe Ltd, has held a Virtual Financial Assets Service Provider License from the Malta Financial Services Authority since 2021. OKX aims to embrace a regulated model in Europe, investing in compliance, risk, and corporate governance to become one of the most accessible crypto venues.
In February, OKX expanded internationally by launching a crypto exchange in Turkey.
Under MiCA, stablecoins issued in the EU are subject to increased regulatory requirements. Various provisions, including some specific to stablecoins, are being phased in, with full compliance required by the end of the year.
