- New Legislative Initiative
- Expert Opinions and Historical Context
- Current Events in Nigeria's Crypto Market
The Nigerian Federal Inland Revenue Service (FIRS) plans to introduce legislation to tax the growing crypto sector. This initiative aims to modernize Nigeria’s outdated regulatory framework and stimulate economic growth.
New Legislative Initiative
During a recent session with the National Assembly’s Finance Committees, FIRS Executive Chairman Zacch Adedeji announced plans to implement regulations for the crypto industry. He highlighted that the new regulation would drive economic growth and encourage innovation. Media adviser Dare Adekanmbi emphasized that a law regulating this sector is necessary to ensure it does not hinder Nigeria’s economic development.
Expert Opinions and Historical Context
Industry experts have been urging the Nigerian government to adopt this approach for a number of years. In 2021, when the government banned financial institutions from interacting with the crypto space, university professor Tayo Oyedeji suggested that emerging economies should prioritize taxation over prohibition. He noted: "Nigeria (a big crypto market) can make millions from crypto gains tax."
Current Events in Nigeria's Crypto Market
Nigeria is one of the largest crypto markets in Africa. Nigerian SEC Director General Emomotimi Agama recently said the country’s digital assets market is estimated to be worth over $400 million. Amid intensified regulation, some crypto platforms have started collecting Value-Added Tax (VAT) on transaction fees. In July, KuCoin announced it would start charging a 7.5% VAT on all transaction fees in Nigeria.
Efforts to regulate cryptocurrencies in Nigeria have intensified. Finance Minister Wale Edun urged the Securities and Exchange Commission (SEC) to prioritize regulatory clarity for this industry. This comes as global players like OKX exit the market, while Binance faces legal action for alleged money laundering and tax evasion.
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