By Ihechi Enyinnaya
The Nigerian government is set to implement a 7.5% Value Added Tax (VAT) on cryptocurrency transactions starting July 8, 2024. This tax will be applied to transaction fees for users whose Know Your Customer (KYC) information is registered in Nigeria, as announced by the cryptocurrency platform KuCoin.
Cryptocurrency transactions in Nigeria amount to approximately $59 billion annually. The peer-to-peer market alone is valued at around $500 billion, according to Ray Youssef, director of the crypto platform NoOnes.
Earlier this year, Olayemi Cardoso from the Central Bank of Nigeria highlighted that $26 billion had suspiciously moved through Binance without being traced.