Crypto
exchange
KuCoin
said
it
would
start
collecting
a
7.5%
value-added
tax
on
trading
fees
from
its
Nigerian
users
on
July
8.
According
to
a
July
3
statement,
the
firm
said:
“Starting
from
July
8th,
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.”
The
platform
explained
that
the
7.5%
fee
would
be
applied
to
each
trade’s
transaction
fees,
not
the
transaction
amount.
It
added
that
the
fee
covers
all
transaction
types
that
Nigerian
users
can
perform
on
its
platform.
KuCoin
attributed
its
new
decision
to
“an
important
regulatory
update.”
However,
other
crypto
trading
platforms
in
the
country,
like
ByBit
and
Binance,
have
yet
to
reveal
such
tax
measures
for
their
users
as
of
press
time.
CryptoSlate
has
reached
out
to
these
firms
for
comment.
Local
industry
stakeholders
said
the
VAT
tax
move
suggests
an
opening
for
crypto
growth
in
the
country.
One
X
user
wrote:
“The
Nigerian
government
has
shifted
its
stance
and
is
ready
to
tax
crypto
exchanges,
generating
revenue
for
the
nation
instead
of
opposing
the
technology.
A
welcome
development,
if
you
ask
me.”
Nigeria
has
one
of
the
highest
crypto
adoption
rates
in
the
world,
ranking
second
on
Chainalysis’
Global
Crypto
Adoption
Index
in
2023.
Still,
the
move
comes
as
the
Nigerian
government
has
adopted
a
somewhat
hostile
stance
toward
the
emerging
industry.
Earlier
in
the
year,
the
Nigerian
government
blamed
manipulative
activities
on
crypto
exchanges
for
foreign
exchange
woes.
This
prompted
several
exchanges,
including
KuCoin,
to
suspend
all
their
peer-to-peer
(P2P)
activities
involving
the
Nigerian
naira
(NGN).
Since
then,
the
authorities
have
increased
their
scrutiny
and
skepticism
toward
digital
assets.
Notably,
the
Nigerian
government
began
legal
actions
against
Binance
in
March,
slapping
tax
evasion
and
money
laundering
charges
against
the
global
trading
platform.
Mentioned
in
this
article
Go to Source
Author: Oluwapelumi Adejumo
