OKX Exits Nigeria, Chooses Malta as EU Hub Amid Regulatory Shifts

Cryptocurrency exchange OKX has announced significant changes to its global operations, ceasing services in Nigeria while simultaneously establishing Malta as its hub for compliance with the European Union’s Markets in Crypto-Assets (MiCA) framework.

The exchange will halt all services in Nigeria by August 30, 2024, citing “recent changes in local laws and regulations” as the primary reason for its exit. Nigerian users will be barred from accessing their OKX accounts after this date, although the company has assured that customers’ funds will remain secure. This decision follows OKX’s earlier suspension of Nigerian Naira withdrawals in May 2024, amid increased regulatory scrutiny on cryptocurrency exchanges in the country.

The exit from Nigeria comes in the wake of broader regulatory challenges faced by crypto exchanges in the region. Notably, Binance, another major player in the crypto space, has faced criminal charges in Nigeria for alleged money laundering and tax evasion. The detention of Binance executives Tigran Gambaryan and Nadeem Anjarwalla by Nigerian authorities has further complicated the regulatory landscape for crypto firms operating in the country.

While closing doors in Nigeria, OKX is expanding its presence in the European Union by selecting Malta as its MiCA hub. This strategic move aims to ensure compliance with the EU’s new regulatory framework for crypto assets, set to be fully implemented by December 30, 2024. OKX cited Malta’s high regulatory standards and progressive approach to blockchain and cryptocurrency as key factors in this decision.

Under the MiCA framework, OKX plans to offer a range of services to eligible EU residents through its Malta-based entity, Okcoin Europe Ltd. These services will include spot trading with Euro (EUR) and USD Coin (USDC) pairs, as well as buy, sell, convert, and staking options. The company already holds a Virtual Financial Assets Service Provider License from the Malta Financial Services Authority, positioning it well for the transition to MiCA compliance.

Erald Ghoos, OKX Europe General Manager-Designate, emphasized the company’s commitment to embracing a regulated model in Europe, stating, “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.”