Topic: Kucoin exchange to start paying Value-Added Tax to Nigeria government (Read 591 times)

Kucoin was the First after Binance to exit the Nigeria market place by delisting Naira from the cryptocurrency excahge, the move spike alot of crisis in the cryptocurrency space within Nigeria, wo that matter pain many of us and now no body send they Papa again, because they can't be trusted, unlike some of the Campion in the market both the local excahges and bybits who stood by us all through the crisis by providing p2p service to the general cryptocurrency public.
Those excahges are our hero's and even if kucoin should pay the promised taxes and resume the p2p service, no much Nigerians will pay attention to them any more, since we can't say that the war against cryptocurrency is over yet, and this is just the beginning, and hard it been, it was kucoin that the government demands traders data's  from the way the government demanded for users information from binance, kucoin will have sold out the users right obviously.
So the News of kucoin being the First cryptocurrency excahges to introduce taxation on trading and remitting to the government, doesn't send any positive vibes in the cryptocurrency community.

Whether the government decides to use the taxation for good or not doesn't matter to traders and the kucoin exchange itself, because in the long run, kucoin as an exchange has done its part in securing its place in the Nigerian market and any other exchange will have to fall in line anyways just to remain in business because i think we have one of the biggest crypto markets in the world and when we consider payments options for overseas transactions, the taxation is way better than using traditional banking systems.

Our government de always put di cart before di horse, dat na why dem no de do anything at di right time. Dis crypto tax matter na wetin dem for don do since wey we don de expect dem to regulate di crypto sector for di country. Anyway beta late dan never, as dem don wake up lastly to do di right thing I support di move so dat we wey de inside go rest for dis crypto restrictions matter.

Anoda matter of concern na weda dem go use di taxation from cryptocurrency to better di economy because our government officials no get good reputation about our public funds. Hopefully di full implementation of taxes on exchanges go make dem comot di restrictions on naira p2p for dis reputable exchanges.

Has any customers being taxed yet? The memo from KuCoin clearly stated that the VAR tax would  commence from 8th July and it's been over 3 weeks now and no single VAT tax has been deducted from my transactions - I've deposited and withdrawn more than $2k on KuCoin since the implementation of VAR tax and no single tax has been placed on any of my transactions yet.



Anyone experiencing the same thing?...

Really bybit? Hmm or am I missing something here ? Is this not the same bybit that has a lot of crazy ass vendors that tend to set their price rate so high in the P2P trade option and yet the system allows such and also again there are vendors are mostly offline well that's atleast from my own perspective. I really don't think I can class bybit exchange as MVP that's ofcourse if there was something like that.

The steps wey kucoin take na very nice one and ee dey recommended to see other exchange make dem sef look into am do as kucoin do . Ee don tay wey naija government don dey show interest to dey collect tex from exchange companies wey dey operate inside naija, As kucoin don take this decision to take VAT (value added Tax) ee show say dem and and naija government don agree to put heads together consine de matter, dem ready to comply with naija tax law.

Kucoin say every transaction for example every 1000 USDT 0.1% go deduct for transaction and 0.75% go deduct for and go for VAT ee go com remain 998.9% for the owner.

I agree with you again. If there was a crypto exchange award, it will easily go to Bybit. They are the real MVPs. And yes, I would have no qualms if I get an email from them informing me of their decision to adopt the VAT. And just a personal opinion, it will disloyal if anyone who switched to Bybit when Kucoin stopped serving Nigerians to leave them and return to Kucoin.

Thank you Igebotz for your response.

If Bybit decided to adopt the VAT tax for Nigerians, I don't think any Nigerian would object as long as the Naira p2p trading marketplace remains open for business. I use Bybit, and I don't mind if they start charging us for VAT fees.

They stood by us when other exchanges abandoned us, and the VAT tax percentage isn't too high because it's charged based on transaction fees rather than transaction amounts. So, if you withdraw USDT for a $1 fee, you'll be charged based on that fees, so you'll end up spending less than $2 on each transaction.

You are the only one that has answered the question that I had in my which is - Now that they have introduced VAT on every transaction, does it now mean that the bank on crypto trading with banks have been lifted? If not it is just stupid and I agree that we should all boycott KuCoin.

My question, if you or anyone can answer it is, as someone who switched to ByBit when these exchanges decided to delist the Naira pair from their platform, how will this affect ByBit. Are they going to now start charging the VAT on every crypto transaction or will they continue the way they have been? And if they don't do you think the government will come for them?

Thank you.

Isn't a bad thing to tax Nigerians involved in trading cryptocurrency, in fact, this should have long happened if we truly have a working system of government in place and not to have tried to hurt participants in trading Bitcoin and other cryptos to the extent that some got their accounts banned and money quizzed as result of government's effort to hurt crypto enthusiasts in the country and finally coming at the end to do what is required. However, isn't just about taxing us, but the question is: Would the money that they will be generating from the tax they made from crypto transactions be used in the right place, and basically alleviate the suffering in our country? Without it still ending up in the pockets of our their politicians.

If at all no be lie you talk, the thing just dey surprise me sef as dem be the first exchange to implement this and I dey feel say dem know how big and the benefits wey dem been dey get from the Nigerian market but just as you talk your mind now about boycotting kucoin e for make sense say everyone get same mentality but the issue be say no be everybody and many will use it ASAP maybe due how dem been dey enjoy their kucoin service but if na only so far as other exchanges like birtmat, bitget and many more are still active and don't follow the VAT fee I don't see any possible reason for me using kucoin back.

E depends sha because the way wey the governments dey go no be so dem supposed go. If they fight the manipulators in the right manners na everybody go benefit and e go show for the price of commodity from the market but because the way wey dem dey fight dem no be the right way and the marketers dem know na na why we no dey see the impact for the price of things. If na you and you know say you fit wake up tomorrow and dollars dun dey go back where e been dey, you go gree bring down the price of your goods when after you sell finish, you fit no dey see money take buy new one. The Naira isn't appreciating in the way is should that would reflect on the economy so all this one wey tinubu dey do na wash.

Tinubu go use taxation finish us, I been know say one government wey go tax and welcome crypto say na Tinubu. All that man knows is about taxing but make we no dey look this value added tax as a bad thing but a good publicity for crypto adoption because as more exchanges dey accept am na so them fit use this chance dey increase their business for the country and bring adoption for all. No how government dey benefits from the tax go come still dey attack crypto but na still that P2P wey them go still dey fight until dem get better way to strengthen the Naira which is just making the economy of the country better but dey no wan do am.

The memo was sent to all Cex exchanges offering Naira p2p trading and only few of the with higher volume complied, Bybit and the rest didn't bend to their demand.


Tax is good, but if the Naira trading pairs isn't coming back most exchanges will not comply, you can't be asking for tax on other crypto assets while kicking your own currency pairs out of the market. There would be a lot of money from tax to subsidize the Naira if they legalize crypto trading and allow naira p2p marketplace on all exchanges.

I hope that everybody that was actively gunning for regulation of crypto in Nigeria will embrace this latest development. What most people don't know is that as time goes on, the value added tax charged will get bumped up and become higher and higher. Now that crypto is getting taxed, is it safe to say that P2P markets will come back and that law enforcement agencies like Police and EFCC  will finally let anyone trading or indulging in crypto at peace? Except that is one of the many benefits we get to ensure, then I hope that it was worth it.

Another key point I took note is that the tax is charged whether or not the trade you took was profitable or not. You just get charged the tax regardless of the outcome of that trade. Interesting.

I still believe everything will balance out and a better structure will be made for crypto adoption in future even with banks making dollars accessible via cards.

Several exchanges with their mode of operation, I guess this is how Kucoin knows to handle the situation to keep running but we still have the likes of Bitget offering this same service for free so it makes me think if there isn't any Nigerian policy maker working in Kucoin, because for others to be going well shows something doesn't add up.

The Nigerian government and the popular crypto exchange KuCoin seems like they’ve decided to come to an agreement. This is what other exchanges in other countries are doing. The government will not temper or penalize you for doing business in their country if you’re paying your tax promptly. I feel things are now becoming more clearer that the Nigerian government was never after those exchanges because they’re the speculators of Naira/Dollar but chasing them so that they can be registered and pay their tax promptly. This is a good development though, at least we can now use those exchanges without a fear of accounts getting blocked or scared of the government for penalizing those using it. With this, I think in no time, the p2p option in the exchange will be back for Nigerians again. I prefer using a reliable exchange for such transactions.

I don't understand why the happiness when you are being extorted for just trading in cryptocurrency without the local p2p. To me I see this new update as a means to make money from Nigerians without giving them the service which is needed the most. The last time I checked Kucoin, no Naira yet so what is the big deal about the VAT.

I will not use Kucoin again for anything until Naira p2p is available. I will prefer to use exchanges that allows p2p trade on Naira or a reputable exchange that does not collect VAT like Binance. Shebi una say other exchanges too go delist Naira p2p trading with time but we are still using it and nothi g has changed. Kucoin service is very expensive and they are like the Nigeria government that loves money and only care about themselves. The 7.5% is small but I don't see any need of it and I think Kucoin is doing it to their favor and not to the favor of their customers.

Well, I already know that, the issues between the government and these exchanges that banned Nigeria from their exchanges was just misunderstanding and I’m glad that they’re now getting things right and a 7% tax isn’t a bad one since we already know that the government is a corrupt and messed up one.
I think other exchanges should take snake steps with KuCoin so they can get back to market since this whole issue with government and exchanges actually affected the Nigeria cryptocurrency market which was directly felt by the Nigeria crypto enthusiasts and frankly it wasn’t a good one.

I hope everything gets back to normal sooner than expected .

You have rightly said, to be honest I personally have waiting for a time like this because I have always know, that is only reason they stopped the p2p trading in Nigeria just to generate funds but I believe is for their selfish reason and personal interest, just like what you said let us see what will be there next move on this, the slated date is already fast approaching.

Do you know what that means? They're splitting up their fees (which is obviously they profit) to settle the government, just to give Nigerians an upperhand. For the best part, it was never a beef; the government just decided to look into CEXs and they daily transactions. That only made them realize how much they can get if they have them under their control. There and then, censorship was the best form of attack just to get their own cut.
Kucoin just decide to do wetin most centralized exchanges no wan do; likes of binance and the rest. Those ones don evaluate wella until them realize say patronage from other part of the world fit still cover up wetin them dey make from Nigerians, that na why them no even send our government.