Cryptocurrency exchange KuCoin will begin collecting 7.5% value-added tax (VAT) on transaction fees for Nigerian users from July 8, 2024.
The 7.5% fee will be applied to the transaction fee of each transaction, not the transaction amount, the exchange explained. KuCoin also said that this fee covers all types of transactions that Nigerian users can make on their platform.
The exchange said that the new decision was due to “an important regulatory update.” However, other cryptocurrency trading platforms in Nigeria, such as ByBit and Binance, are yet to disclose similar tax measures to their users.
Many industry experts believe that KuCoin's move to collect VAT shows that the Nigerian government is paving the way for the development of cryptocurrency.
“The Nigerian government has changed its stance and is ready to tax cryptocurrency exchanges, generating revenue for the country instead of opposing the technology. A welcome development, if you ask me.”
A user on X writes: Nigeria has one of the highest cryptocurrency adoption rates in the world, ranking second in Chainalysis's 2023 Global Crypto Adoption Index.
Nigeria Tightens Cryptocurrency Regulations
However, this move comes in the context that the Nigerian government has taken a rather tough stance towards this emerging industry.
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