The Nigerian government has slammed a 7.5% Value Added Tax (VAT) on cryptocurrency transactions.
The cryptocurrency platform KuCoin disclosed in a recent email that on July 8, 2024, a 7.5% value added tax will be imposed on Nigerian cryptocurrency traders.
“We are writing to inform you of an important regulatory update that impacts our users from the Republic of Nigeria.
“Starting from July 8, 2024, we will begin collecting a Value-Added Tax (VAT) at a rate of 7.5% on transaction fees in each trade for users whose KYC information is registered in Nigeria.”
Official data shows that cryptocurrency transactions are $59 billion yearly.
According to Ray Youssef, the director of crypto platform NoOnes, the peer-to-peer business is worth $500 billion.
Earlier this year, Olayemi Cardoso, the Central Bank of Nigeria, alerted the Nigerian government that a suspicious amount of $26 billion was siphoned through Binance without a trace.