Nigeria’s Securities and Exchange Commission (SEC) is working on a plan to tax crypto transactions as part of a broader effort to increase government revenue, Bloomberg reported on Feb. 18.
According to the report, the regulatory body intends to bring eligible crypto transactions on licensed exchanges under the country’s tax framework. Meanwhile, a bill outlining the tax structure is under review and could be approved within the quarter.
While the SEC has not disclosed the expected revenue from this initiative, officials believe it will generate a significant amount because Nigeria is one of the leading countries in crypto adoption.
Some exchanges are already implementing taxes. KuCoin, Nigeria’s largest trading platform, began charging its Nigerian customers a value-added (VAT), of 7.5%, on their trading fees.
Meanwhile, industry experts suggest the taxation policy may indicate a shift in the government’s stance on crypto. Last year the SEC introduced a framework for licensing that granted provisional licenses as virtual asset service provider (VASP) to platforms including Busha, Quidax and others.
Ongoing Binance dispute
The tax development comes amid Nigeria’s ongoing standoff with Binance. In the last year, the authorities and the global exchange have been at odds over compliance with regulatory requirements.
On Feb. 14, Nigeria’s Minister of Information and National Orientation, Mohammed Idris, dismissed bribery allegations made by Binance executive Tigran Gambaryan and urged the public to disregard them.
Gambaryan denied that Binance was manipulating the Naira and claimed that Nigerians officials were seeking bribes.
The authorities have denied these allegations.
“We categorically deny the retaliatory claims made by Mr. Gambaryan against Nigerian officials involved in his case, and we urge the public to disregard these false accusations in their entirety.”
The authorities also accused Binance of attempting to pay a $5 million deposit to secure Gambaryan’s release.
The government finally stated that it had reached an agreement on humanitarian terms with the US in order to free him.
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