Since the start of the year, Nigerian authorities have been publicly feuding with cryptocurrency exchange companies, particularly targeting Binance.
Is Nigeria Now Collecting Taxes on Crypto?
Since the start of the year, Nigerian authorities have been publicly feuding with cryptocurrency exchange companies, with Binance at the forefront of the battle. This clash highlights the Nigerian government's stringent stance on cryptocurrency regulation and enforcement, aiming to control the burgeoning crypto market within the country. Adding to the ongoing tension, KuCoin, a prominent crypto exchange in Nigeria, succumbed to regulatory pressure and shut down its peer-to-peer platform in May. In a new development, KuCoin has announced the introduction of a 7.5% VAT on trading fees for Nigerian users, effective July 8, 2024. The tax, ranging from 0.1% to 0.05%, will be applied to transaction fees rather than the total transaction amount. For instance, a transaction fee of $1 on a $1000 crypto purchase would incur a VAT of $0.075, resulting in a net transaction amount of $998.925. This move has sparked reactions among Nigerians, who are questioning the rationale behind the government…
Founded Mainwave Digital Media, Temmy Samuel is a financial advisor and journalist, blending financial expertise with storytelling skills to simplify complex financial topics for readers and clients alike. Learn More About Temmy Samuel
