Nigeria to Revise Cryptocurrency Regulations to Include Taxation
The Nigerian government plans to revise cryptocurrency regulations to include digital asset transactions in its tax framework, aiming to stabilize the economy after fuel subsidy removals. This initiative is part of broader efforts to generate revenue under President Bola Tinubu.
Nigerian Lawmakers Consider Crypto Taxation
- Lawmakers are contemplating taxes on digital asset transactions on regulated exchanges to address economic challenges.
- Banks remain prohibited from facilitating crypto transactions.
- A proposed bill includes crypto taxation and may be approved by Q1 2025.
- In July 2024, Nigeria imposed a 7.5% value-added tax (VAT) on digital asset transactions.
SEC Aims to Increase Licensed Crypto Exchanges
- Nigerian SEC seeks to expand the number of licensed crypto exchanges for better oversight.
- The first official crypto exchange license was granted to Quidax in August 2024.
- The SEC plans enforcement actions against unregulated exchanges starting September 2024.
Regulatory Actions Against Unregistered Firms
- OKX suspended Naira withdrawals and exited the Nigerian market due to regulatory concerns.
- Binance faced scrutiny for manipulating local currency and halting P2P services for Nigerian users.
- KuCoin removed the Nigerian naira from its platform following Binance's actions.
- The EFCC requested user data from Binance regarding trades on its platform.
- The SEC updated marketing regulations in December 2024 to combat scams related to unregulated crypto products.