- OKX has removed naira support from its p2p platform.
- The crypto exchange’s move comes after Nigerian authorities forced Binance to do so over a month ago.
- Local reports indicate that a blanket ban on crypto p2p trading may be in the works.
Nigerian crypto users are quickly running out of options.
As part of efforts to stem the free fall of the naira, the country’s local currency, authorities have turned their attention to the crypto sector, alleging that peer-to-peer (p2p) traders are manipulating the naira through pump-and-dump strategies. In line with this reasoning, the country’s central bank has launched a wide-reaching campaign against the crypto industry that, till now, has seen most of the focus on Binance, forcing the firm to shut down its naira p2p platform and charging it for money laundering and tax evasion.
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However, as authorities have repeatedly made clear, Binance is not the only firm in its crosshairs. Following Binance, OKX has now also seized naira p2p support.
Changing Market Requirements
As of Friday, May 3, the Nigerian naira could no longer be found on OKX’s p2p marketplace.
OKX confirmed the removal of the currency from the platform in an X post from its official help desk account, citing “a change in local market requirements.”
"We understand that this change might have an impact on your trading preferences, and we apologize for any inconvenience this may cause," the team added.
Most Nigerian crypto users have been left wondering which exchange would be the next domino to fall while decrying the potential effects on young people who have built businesses and streams of income around the sector.
The recent OKX move comes as rumors of a looming crypto p2p ban gain momentum.
Back to Square One?
On Friday, May 3, a local news outlet reported that at least three fintech startups in the country, including Moniepoint, Paga, and Palmpay, will block the accounts of users engaging in crypto p2p trading and report suspected transactions to authorities in line with the National Security Adviser (NSA) designating crypto trading as a national security issue.
According to two persons familiar with the matter that the outlet cited, regulations to ban crypto p2p trading will soon be unveiled.
If it happens, the ban would effectively reverse the Central Bank’s December 2023 decision to lift a two-year ban on banks facilitating crypto transactions.
Meanwhile, this week, authorities have already frozen the accounts of over 1,000 crypto traders in the country amid ongoing investigations into money laundering and terrorism financing.
On the Flipside
- Nigerian OKX users can still access other services on the platform and transfer their assets to other platforms if desired.
- A recent circular dubbed as fake by Nigeria’s central bank had instructed banks to freeze the accounts of cryptocurrency traders, stoking crypto ban fears.
Why This Matters
OKX’s move to cease naira support on its p2p platform suggests Nigeria’s crackdown on crypto is intensifying, foreboding a potential blanket ban on crypto p2p transactions. This move could force crypto p2p transactions to move to encrypted messaging platforms lacking the escrow services offered by exchanges, exposing users to greater risks of scams.
Read this for more on Nigeria’s war on crypto:
Unraveling Binance’s Nigeria Woes as Govt Hunts User Info
Learn more about a recent move from a hitherto dormant Ethereum whale:
$5.5M Move Shakes Ethereum as Genesis-Era Wallet Awakens
