The Nigerian government will start collecting a 7.5 percent Value Added Tax (VAT) on cryptocurrency transactions from users registered in the country starting July 8, 2024.
This information was disclosed by the popular cryptocurrency platform, KuCoin, in a recent email notice to its Nigerian users. “We are writing to inform you of an important regulatory update that impacts our users from the Republic of Nigeria. Starting from July 8th, 2024, we will begin collecting a Value-Added Tax (VAT) at a rate of 7.5 percent on transaction fees in each trade for users whose KYC information is registered in Nigeria,” KuCoin stated.
Official data indicates that the annual volume of cryptocurrency transactions in Nigeria is $59 billion. Additionally, Ray Youssef, director of the cryptocurrency platform NoOnes, mentioned that peer-to-peer business is valued at $500 billion.
In February 2024, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, raised concerns over a suspicious $26 billion funneled through Binance without a trace.
