OKX halted withdrawals in Naira in May 2024 due to regulatory issues, following accusations against Binance for currency manipulation and money laundering in Nigeria.
Cryptocurrency analysts in Nigeria have strongly criticized OKX’s departure from the country. This move has raised significant concerns about Nigeria’s regulatory environment and its impact on the rapidly expanding blockchain and cryptocurrency industry.
Rume Ophi, a local crypto advocate, expressed frustration over the sudden exits of several crypto exchanges from Nigeria. He questioned how these exchanges entered the market only to leave abruptly.
“It’s shocking that as industry leaders, we’re trying to engage with the government on regulatory frameworks, yet exchanges are already pulling out due to unclear regulations,” he remarked.
Slow regulatory progress
The slow pace of regulatory development is seen as a major setback for Nigeria, particularly compared to countries like South Africa, which are leading the way in the continent’s cryptocurrency market.
Ophi highlighted the stark contrast between the prominence of Bitcoin and cryptocurrencies in upcoming US elections and the regulatory uncertainty in Nigeria, describing the situation as “embarrassing, to say the least.”
Drawing parallels with the European Union’s approach, Ophi noted that the EU’s Markets in Crypto-Assets (MiCA) law continues to evolve through collaborative amendments and refinements.
Summary Review: The departure of OKX from Nigeria has ignited strong criticism from cryptocurrency experts, highlighting deep concerns about the country’s regulatory landscape. This move underscores the challenges facing Nigeria’s blockchain and cryptocurrency sector amidst regulatory uncertainty. While other regions like South Africa forge ahead with clearer frameworks, Nigeria risks falling behind, impacting its position in the global cryptocurrency market. As stakeholders advocate for clearer regulations, the contrasting approaches, such as the EU’s dynamic regulatory framework, serve as a benchmark for Nigeria to consider in fostering a more stable and supportive environment for digital assets.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
