Chief Bola Ahmed Tinubu’s government has introduced a Value-Added Tax (VAT) on all cryptocurrency transactions, marking a significant regulatory development in the country’s digital asset landscape.
Starting July 8, 2024, a 7.5% VAT will be applied to transaction fees for users with accounts registered in Nigeria.
This announcement follows a recent crackdown on cryptocurrency platforms by the Nigerian authorities, who argue that such platforms facilitate currency speculation, adversely affecting the Nigerian naira.
KuCoin, a major cryptocurrency exchange platform that recently deactivated its peer-to-peer (P2P) functions for Nigerian users and exited the Nigerian market, confirmed its compliance with the new directive.
In a statement released on Wednesday, KuCoin informed its Nigerian users about the regulatory update and the impending tax implementation.
READ ALSO: BREAKING: Court Nullifies Edo PDP Primary Election That Produced Asue Ighodalo
KuCoin stated, “Starting from July 8th, 2024, we will begin collecting a Value-Added Tax (“VAT”) at a rate of 7.5 per cent on transaction fees in each trade for users whose KYC information is registered in Nigeria.”
Follow the Parallel Facts channel on WhatsApp: https://whatsapp.com/channel/0029VaCQSAoHgZWiDjR3Kn2E
