Nigerian cryptocurrency analysts have expressed strong criticisms following the exit of the crypto exchange OKX from Nigeria. This departure has sparked significant concerns about the country’s regulatory landscape and its impact on the rapidly growing blockchain and cryptocurrency sector.
Speaking with Cointelegraph, Rume Ophi, a local crypto stakeholder, voiced his frustration over the sudden exits of several crypto exchanges from Nigeria. He questioned how these exchanges entered the country and are now swiftly leaving.
“It is shocking to know that we, as industry leaders, are trying to engage the government on the way forward to good regulation, and exchanges are already leaving because of regulations that we don’t even know about,” he stated.
Slow regulatory progress
This slow regulatory progress is seen as a significant setback for Nigeria, especially compared to countries like South Africa, which is emerging as a leader in the continent’s cryptocurrency market.
Ophi noted the stark contrast between the prominence of Bitcoin and cryptocurrency in the forthcoming US elections and the regulatory confusion in Nigeria, calling the situation “embarrassing, to say the least.”
Drawing comparisons to the European Union’s approach, Ophi pointed out that the European Union’s (EU) Markets in Crypto-Assets (MiCA) law continues to undergo amendments and refinements through collaborative efforts.
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He urged the Nigerian National Assembly to engage in meaningful discussions to establish effective regulations. “Regulations are an overtime thing; gradually, we get better,” Ophi noted, emphasizing that regulators should focus on regulating rather than making laws.
Call for quicker, transparent regulations
Obinna Uzoije, a data and policy expert with Africa Policy Conversations, emphasized the need for a quicker, transparent and more welcoming regulatory framework, highlighting the industry’s potential to create numerous employment opportunities for Nigerian youths.
“This is not just about cryptocurrency; it has been labeled a crime in Nigeria to deal with digital assets. This is an entire industry of marketers, community managers, developers, traders, and so much more,” he explained.
The departure of OKX and other exchanges is seen as a missed opportunity for Nigeria, reminiscent of the lost potential during the 2021 bull market. Uzoije argued that Nigeria needs to demonstrate leadership in the blockchain and cryptocurrency sector, not just in words but in action.
OKX exchange, however, announced on July 18 that Malta will serve as its MiCA hub to ensure compliance with regulatory requirements in the European Union. This contrasts its decision to cease services in the country due to “recent changes in local laws and regulations.”
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