Regulation
KuCoin to Charge 7.5% Value-Added Tax (VAT) on Crypto Transactions in Nigeria Following “Major Regulatory Update” – BitKE
Cryptocurrency exchange KuCoin has announced that it will begin levying a 7.5% value-added tax on transaction fees from its Nigerian users starting July 8, 2024.
“We are writing to inform you of an important regulatory update that affects our users in the Republic of Nigeria,” KuCoin said.
“From 8th July 2024, we will begin levying Value Added Tax (“VAT”) at a rate of 7.5% on the transaction fee of each transaction for users whose KYC information is registered in Nigeria.”
According to KuCoin, the 7.5% fee will apply to the transaction fee of each transaction, not the transaction amount. The company added that the fee covers all types of transactions that Nigerian users can make on its platform.
The company attributed its new decision to “an important regulatory update,” although other cryptocurrency trading platforms in the country, such as ByBit and Binance, have yet to reveal such tax measures for their users.
The move comes just over a week after the Nigerian Securities and Exchange Commission (SEC) issued a notice asking local cryptocurrency firms to apply for registration under its amended rules within 30 days.
🇳🇬REGULATION | Nigeria SEC issues notice for VASP integration in 30 days due to “current realities”
At the end of the 30-day period, the Commission indicated that it would initiate enforcement action against any VASP operating that did not comply with the guidelines.… pic.twitter.com/ThvMC4MwFQ
— BitKE (@BitcoinKE) June 22, 2024
KuCoin was one of the exchanges that suspended some of its services, including P2P, due to the federal government Authorities cracked down on cryptocurrency businesses earlier this year.
REGULATION | Cryptocurrency Exchanges to Stop Selling StableCoin in Nigeria Amid Apparent Crackdown
“There was a meeting of cryptocurrency founders on Tuesday [February 27 2024] “This morning, a number of them agreed to suspend transactions on their platform,” a person present at the meeting told a local correspondent… pic.twitter.com/iiYBuYrpOu
— BitKE (@BitcoinKE) February 29, 2024
“Starting 05/15/2024 at 08:00 (UTC), we will temporarily suspend all Nigerian Naira (NGN) P2P services and Fast Buy service via Naira Cards. During this temporary pause, we will focus on ensuring compliance and creating a more robust and secure environment for all our users,” KuCoin said at the time.
See also
Exchanges operating in the country have come under scrutiny as authorities believe cryptocurrency platforms facilitate speculation and potential manipulation of exchange rates. Coinbase, Quidax, and Binance have also been affected.
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