Kucoin to impose 7.5% tax on transactions made by users in Nigeria – DiarioBitcoin

The measure seeks to ensure that the platform operates in compliance with local laws, since the Nigerian Securities and Exchange Commission stipulated that registered exchanges must apply said tax.

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• Kucoin will implement tax for users residing in Nigeria
• These users will have to pay 7.5% VAT on their commercial operations.
• The measure comes in accordance with the guidelines of the SEC
• This represents a change from the manifest rejection by state bodies towards cryptocurrencies.

Due to the introduction of new policies in Nigeria, the international exchange Kucoin will introduce a 7.5% tax on all transactions made by local users through its trading platform.

Tax on cryptocurrency transactions

This was announced by the team of Kucoin In a message published through its official X account, where it indicates that the measure will come into effect as of July 8 for users residing in the country, who as part of the payment of the value added tax (VAT) must assume an additional 7.5% on commercial operations.

✅KuCoin introduces 7.5% VAT on trading fees for Nigerian Users

We are writing to inform you of an important regulatory update that impacts our users from Nigeria.

Starting from July 8th, 2024, we will begin collecting a Value-Added Tax (“VAT”) at a rate of 7.5% on… pic.twitter.com/Y6elL3RjFi

— KuCoin Africa (@KuCoinAfrica) July 3, 2024

According to some reports, the measure was also announced in emails sent by the exchange to users in the country. In the statements, Kucoin explains that the new resolution comes in response to recent measures implemented by the Securities and Exchange Commission (SEC) of Nigeriawhich required all platforms operating locally to register with the agency.

Nigeria and cryptocurrencies

The announcement comes amid the problems that the Nigerian economy has been facing for several months, whose government blamed the exchanges, pointing especially to Binance, for attacking the local currency by allowing cryptocurrency trading.

However, analysts believe that the implementation of this tax points to a recognition of digital currencies, especially when the central bank ruled some time ago that banks should not provide commercial services to these platforms or companies in the sector.

In this regard, the president of the SEC, Emomotimi Agama admits that this new rule is part of its plan to regulate cryptocurrencies, although he did not offer further details about the measure or the upcoming resolutions that the agency plans to implement.

As regulations in Nigeria move forward, the attention of the crypto sector is focused on the case of Tigran Gambaryan, executive of Binance who is in prison in the country and faces trial on money laundering charges. His family and lawyers have warned about his health and have even requested international support to mediate the legal process.

Article by Angel Di Matteo / Bitcoin Diary

Picture of Unsplash, edited with Canva

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be appropriate for retail investors, as the total amount invested could be lost. Check the laws of your country before investing.