Local Digital Exchange platform will not work well in Nigeria even they tax them because Nigeria government will over tax them to the extent that they could not do well with the services. But the international exchange platforms are doing well so we also patronize them more the local exchange. Patricia is dead, and I have not hear of Luno exchange platform.
But all do same if they can do well with the exchange and tax dem nd di exchange go do like standard ones in the globe then there will no no issue
Topic: Cryptocurrency in Nigeria: From ban to taxation - page 2. (Read 261 times)
Patricia? The exchange was hacked and their customers funds are still with the exchange up till now.
I'm aware they have issues and I only cited it as an example.We need to know the regulatory framework about this. Is there one already? I do not have time to read about the Finance Act yet, but I think it is just an introduction of 10% tax for cryptocurrencies that is included yet for now.
Well... It's still a good thing that the government is gradually taking cryptocurrency seriously.Government are now just coming out straight on the interest of what they want with cryptocurrency, it's either they control it which is obviously impossible or they regulate it which will attract the payment of tax for every transactions performed.
If it was a new administration that signed the financial act into law it would have been a different thing but since it's the same administration that allowed CBN to ban crypto activities in the country, all I can say is that maybe it's dawned on them that they cannot control the masses and they are beginning to look at the brighter side.Will the government through this now allow the commercial banks to perform cryptocurrency transactions as against the ban made in 2021 considering the new administration.
I think so... Everything is still not glaring but in time we will get to know better. 
Government are now just coming out straight on the interest of what they want with cryptocurrency, it's either they control it which is obviously impossible or they regulate it which will attract the payment of tax for every transactions performed, but two things remain unclear to me here, will the exchanges be the ones to be taxed or every individuals, secondly is that, will the government through this now allow the commercial banks to perform cryptocurrency transactions as against the ban made in 2021 considering the new administration.
Nigerian government can be successful with the new taxation law by having crypto platforms that are registered and operating in the country like Patricia, Retimo, Luno etc. pay for their taxes but...Is this tax also applied to individuals using or trading cryptocurrency in these platforms?
Yes, but we need clear definition of how the tax is going to be collected. I guess people that trade or invest and make profit would be the ones to pay the tax after the net profit is positive. But why mentioned Patricia? The exchange was hacked and their customers funds are still with the exchange up till now.
If yes... Do you think they will have any luck in taxing individuals using this platforms since we've not really had good results in collecting taxes from physical businesses?
There will always be tax evaders, it is also in developed countries, but maybe not as worse as it is in Nigeria. Introducing tax on crypto will be beneficial for the country is all I could think of.Also, most of these crypto merchants charges high transaction fees already and with the new law in place, can these platforms include a tax fee for every transactions without most users noticing?
We need to know the regulatory framework about this. Is there one already? I do not have time to read about the Finance Act yet, but I think it is just an introduction of 10% tax for cryptocurrencies that is included yet for now. https://pwcnigeria.typepad.com/files/2022-finance-bill_hor.pdf
Quote
On the eve of his departure from office on May 28, former Nigerian President Muhammadu Buhari signed the Finance Act, 2023, into law. The act introduces a series of tax reforms aimed at modernizing the country’s fiscal framework. Among its provisions was the introduction of a 10% tax on gains from the disposal of digital assets, including cryptocurrencies.
In early 2021, CBN sent a memo to all commercial banks in the country to block the accounts of persons or establishments involved in crypto activities but with this bill passed into law it seems that the CBN ban of cryptocurrency is no longer effective since the government now wants a 10% taxation fee from the gain in cypto usage.Quote
In many cases, governments do require the cooperation of crypto exchanges operating within their jurisdiction to track users’ capital gains. By working with exchanges, authorities can access transaction data and identify individuals or entities for tax purposes. However, the level of cooperation and specific regulations vary from country to country. Some jurisdictions have implemented stricter requirements for exchanges to report user information, while others may have limited regulations or are in the process of developing them.
Nigerian government can be successful with the new taxation law by having crypto platforms that are registered and operating in the country like Remitano, Luno, Roqqu, Bitmama, NairaEx etc. pay for their taxes but...Is this tax also applied to individuals using or trading cryptocurrency in these platforms? If yes... Do you think they will have any luck in taxing individuals using this platforms since we've not really had good results in collecting taxes from physical businesses? Also, most of these crypto merchants charges high transaction fees already and with the new law in place, can these platforms include a tax fee for every transactions without most users noticing?Share your thoughts.
https://cointelegraph.com/news/nigeria-to-tax-crypto-digital-assets-10-on-capital-gains-experts-react/amp
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