Topic: Nigerian government set to tax bitcoin and crypto transactions (Read 608 times)

It wouldn't be a surprised if one day Nigerian citizen revolt against the government.  That limit is too much.  How could a starting business thrive if they charge 5% on excess transactions.  These people (banks) are milking its citizen and yet the government does nothing about it.

I don't think that limit encourage the use of CBDC, that limitation encourage hates and anger.  I bet many will just skip banks and do their own network of transactions with financial institution out of the picture.



True, milking its citizen of money and adoption of cryptocurrency is two different things.

1. No, introduction of taxes especially sfter trying to ban it completely doesn't mean they are adopting the technology, it simply means they failed to ban or restrict users so now decided to discourage with implement of taxes.

2. Taxing differs from one to another country, some tax for the gains, some keep it under income tax.

3. Taxing every transaction isn't really a good thing, even 1 or 2% if too high because we have to pay that tax rate from entire amount not from profits.

Great. This means that trading peer-to-peer, buying goods and services from merchants, selling goods and services as a merchant, coins that return back on-chain after lightning, and even moving your coins across your wallets is a red flag. Which basically means that self-custody and legitimate usage of bitcoin are red flags.

Did I ever mention lightning in this thread? No. You did. You, psycho consensus nightmare.

You are very correct on this, many people have this miss conception about bitcoin in Nigeria even though, Nigeria happens to be one of the highest Bitcoin users globally and in terms of Bitcoin trading volume, Nigeria is still the highest in Africa even as there is a restriction of banks from cryptocurrency transactions. Nigerian have adopted Bitcoin as an alternative currency even though they have to do their transaction in a p2p manner since everyone knows that, since Bitcoin is decentralized no third parties can restrict Bitcoin transactions so only the bank can be restricted from cryptocurrency transactions but the individuals are free to transact Bitcoin in a peer to peer level.

dont dare start that nonsense again
its not self custody that is a red flag. its transfers from a non regulated CEX or mixing service that are red flags.
stop the nonsense of trying to say bitcoin self custody is a risk just to pretend your altnet solution is better.
your favoured altnet is a privacy enhancing tool which is a red flag.. not bitcoin self custody

grow up

No doubt. I'm not in favor of anarchy. But I'm mostly favor of freedom, and the more regulation there is, the more likely to have part of this freedom violated. I mean, is there any specific reason why the US government collects about one fifth of the profit made from selling bitcoin? What's the reasoning behind this? What about self-custody? Did you know that if you're caught to do self-custody you're a red flag for the FATF? The only rational solution for politicians is to have everybody's money on a fully surveilled bank account; well, we have the power to effectively vote against this notion easily now more, and we better do.

True!  And I think the Nigerian government is just doing that to get money through taxation, since the Nigerian government can't stop their citizen in using and investing in Bitcoin, they rather have it taxed and profit from it.

I have not known about this, because in my country, the government has not set taxes on the exchanges, all we have to pay is the processing fee and nothing else.

I think this depends on the set of rules the government is implementing.  Just like in Japan where they implement easier rule for the cryptocurrency to be listed in an exchange.  Some country ease up the usage of cryptocurrency in order for its citizen to use Bitcoin easily thus making adoption easier.

Here are my thoughts on your question.

• Without adopting, government can make you pay taxes on your crypto profits.
• Several Asian countries have implemented crypto taxes and the government directly sets taxes on exchanges so that every trade made by traders will generate taxes for the government.
• Rules won't help speed up adoption, but will definitely hurt trader indirectly.

Governments that are smart will take advantage of opportunities will regulate users ^{[traders & investors]} to pay taxes from their profits in crypto. They don't plan to adopt bitcoin or crypto as a means of payment, and I think without changing the regulations they will make huge profits from crypto. Rules like this have been implemented in several countries, but what is certain is that it benefits the government so that the state tax treasury will increase.

The sum of amount you had mentioned is very low for withdrawal limit in Nigeria. Even the business can’t use this for their transaction,this should not back the Nigerian economy backward. Because people with plan B will be work out here.They will start to use of crypto currency for the transaction.So it look like the market going to response for the same and green market in few days.

They are into Bitcoin adoption not to use its service or integrate the technology in their current finance system but to milk Bitcoiners thru tax.  They adopt Bitcoin to profit from it.


As far as I know crypto taxation isn't fully implemented yet by other country, I believe they are still in discussion process.  But those cryptos that are converted to cash is susceptible to taxation.


Depends on the kind of regulation the government had implemented.  If they regulate it just to tax Bitcoin, then I do not think it is helping for adoption.  If a country is serious about adoption, they will make a law that will implement an easier access to Bitcoin ecosystem and not implementing a one-sided gain like taxation and nothing else.

I wouldn't call them selfish I think they see that the people of their country are using Bitcoin or cryptocurrency even when it was illegal, Country and government both ain't get any benefit from this, so by imposing taxes, at least some money will be deposited in the country's reserves. I applaud their step. I think it will not only increase the use of cryptocurrency in their country but also increase the users and also increase their country's reserves through this step

This is literally an impossible policy like many others that I don't think will be effective in implementation, because #500'000 is not even up to what some people withdraw some days for business transactions, so in such cases, what will be the fate of such individuals? Or poor individuals who don't have a smartphone to access the CBDC mobile app? Because no matter how the central banks claim to regulate fiat currency, there will always be a plan B, which is why I love Bitcoin as it gives us unlimited access to our funds

Believe me, this is not about any form of adoption from the Nigeria government, this is for their own selfish gains, since they can't control people not to invest in crypto they have to find ways to make gains out of crypto adopters, now that sounds more like the Nigeria government.

The government is not considering other cryptocurrencies or bitcoin for adoption now, but i think what they needed is the tax payment for regulations which can only be effective with the centralized exchanges and not with everyone participating in bitcoin transaction from their decentralized wallet.


This is common to many countries as well, they tax the exchanges, crypto firms, mining rigs for power supply and other regulations protocols they put in place for those that can't evade their centralizdled authority.


No but rather it may make no tangible difference since they are after what they collect and notbthe adoption and with or without government bitcoin is moving forward ever.

The Central Bank of Nigeria ordered the country's banks to limit the issuance of cash at ATMs.
https://www.cbn.gov.ng/Out/2022/CCD/RevisedCashWithdrawal.pdf
https://www.vanguardngr.com/2022/12/breaking-cbn-reduces-cash-withdrawals-to-n100k-n500k-per-week-for-individuals-companies/
"The Central Bank of Nigeria (CBN) has announced a new policy that mandates deposit money banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and corporate entities do not exceed N100, 000 and N500, 000, respectively, per week."
It's a way to get people to use the CBDC. I don't think this way will be successful.

That is exactly what the Nigerian government wants, as they will impose tax on any cryptocurrency investor. They want to use this method to begin profiting from cryptocurrency.
The government of Nigeria may decide that accepting it and profiting from it is preferable to outright banning it and having the public use it, given that the public is already using Bitcoin despite the ban that took effect in February 2021.

We can not trust them completely but society must have government and their staffs to operate. One party is down, another party takes over the government and it's democracy that can keep society works well. It's not perfect but it is better than no government at all or a dictatorship.

It's good to know that you are not a zero-tax supporter. I believe tax is necessary but how government use tax to serve their citizens, communities and their national well-beings is a challenge.

We only know it is good or bad after they do it.

Not necessarily, such a thing has happened in most countries that previously banned bitcoin and cryptocurrencies.
Regulating and taxing cryptocurrencies is a kind of tacit recognition, but does not mean adoption.

Governments that were unable to prevent people from using bitcoin and cryptocurrencies eventually found themselves forced to deal with the fait accompli through regulation and tax collection.

Despite all the negatives that may exist in these laws, I find them positive because they have recognition of Bitcoin and encrypted currencies. This recognition can lead the government to accept Bitcoin in the end when they find that this helps fill the state treasury and develop the economy.

Of course it is, but history is full of breaches of government spending. I personally don't trust my president and financial secretary for doing the right thing for the community, and that's mostly because they don't know what's the right thing to begin with. I'm not in favor of zero taxes, there's absolutely a percentage of income that has to be taxed, and a percentage of services the government might be doing more effectively or/and properly than the private sector, but our government spending has reached the ceiling.

I mean, who's trusting politicians nowadays? I've yet to find a non-corrupted individual in that field. Everybody knows how to spend other people's money better than them. Evading taxes is an effective way to say "screw you" or "I don't trust you".

Freedom of choice. That's why I'm in favor of having a cautious attitude against regulations. There's no doubt that they're going to discourage its usage as money. They already have.

I've got two thoughts on this;

1. The government can't do anything so even if they ban bitcoin transactions into their jurisdiction, they can't stop people from doing P2P transactions whether they use an exchange or just go directly to their dark made market.

2. The people has also no choice, the government bans or unbans, they'll still be in a tough situation so taxation is lkely the incentive that they can give in return to the government. Well, most countries do this as crypto is a big thing already that they can no longer avoid to ignore.

Extreme?
No, that's, unfortunately, the new reality, and with each passing week in a bear market and more and more thinking that they won't either recoup losses or in other cases finally get rich enough not to work again they re looking at every possible way for the coins to increase in price.
Do you think the majority who traded shitcoins, did bounties, and invested in every hype project really care about things like decentralization or being your own bank? No, they are after the gain in $ value, and if taxation would help them 10x in one week they will eagerly do everything possible to become true.

This is what I find quite fascinating about bitcoin, after all, bitcoin is want you want it to be, an investment, a speculative asset, a way to hide your money a way to send money, it can serve multiple purposes and with the reverse of the expression, your keys, your coins your decision to do what you want with them, one can't do anything but respect other's view, no matter how twisted it is.

We have to wait for the actual law to be passed and for more reliable news to come out but based on what every other country has done it always comes down to using centralization to tax people's finances. For example they could be taxing the profit people make from trading bitcoin (and shitcoins) they do on centralized exchanges whether domestic or foreign. In some cases we've seen governments attempting to create a domestic exchange just to be able to have more control and insight into what people do so that they can tax it easier.
And of course another way is to use merchants and payment processors (both are centralized) to take additional taxes.

In any case I don't think it is a big deal though since we are already paying taxes when we trade in other markets like stocks market or when we run a business and have to pay taxes on the income and more.

I don't think so, I think it's just a way for the government to get more tax on their funding and it's actually good for people transacting crypto because it means it's legal so there's no more fear when transacting with crypto, and you should read that clearly every law because if your country's government has taken taxes from crypto they will also provide legal certainty for fraud in crypto transactions and so you will be more comfortable doing transactions because there is legal certainty.

Not extreme!

I only want to emphasize a fact about tax and growth of cryptocurrency market. We can not want one and reject the another one.

It is fair enough if cryptocurrency investors have to submit their tax report and contribute part of their earnings to government tax treasury and contribute to communities, societies they are living in.

I know governments are not perfect and they even corrupted too but without them, societies would be in mess. Democracy is a tool to control governments and their policies. In countries where there is no democracy, governments are dictators and citizens bear lot of unfairness and bad policies from governments. Their voices won't be listened by governments without democracy.

I think you've went at the extremes. Obviously some cryptocurrency users are purely selfish, don't want regulation that affects their pocket, want their coins to rise in value, sometimes even have their national currency debased to gain capital appreciation, and the like. But, don't take it to the other extremeness, in which we should welcome more regulation (as if it isn't a bureaucratic paradise already) that is completely hostile to the cryptocurrency market, for the sake of the community.

Governments attempt to tax the citizen at the drop of a hat. Somebody designed something for ordinary citizens that's easy to avoid taxes by, and now they're sweating. Without conceiving that either of those is morally fine: Pick a side.

Appreciated with Nigerian government have planning with set to tax Bitcoin and cryptocurrency transaction, actually after having tax for all cryptocurrency transaction government have regulation about Bitcoin become legal transaction payment later. I think have way without paying tax with your transaction, I did it because last several months my country have adopted with tax transaction when trading in local exchange, I used Binance support with my local currency pair, trade there and later withdrawing with local currency to local exchange market without paying fees except withdrawing only still cheap under $1.

If your local currency pair or Nigerian pair have trade at Binance you can use this way depending Binance still not required for tax from your government country.

From the above post it looks that Nigeria is set to adopt crypto by regulating the crypto market.
Although the banks had placed a ban on crypto transactions, now that Nigeria is supporting cryptocurrencies I think the banks will uplift the ban.
Moreover regulation in cryptocurrencies will have its own pros and cons starting with infrastructure for cryptocurrencies but taxing the same.
In my country taxation of cryptocurrencies is not welcoming to the citizens because of flat 30% tax on crypto income.
Lets see how it plays out in Nigeria.

This is a good development for Nigeria and the Nigerian government will be able to earn a lot of revenue through TAX collection.  Which will play many roles in the country's economy. And through the use of Bitcoin, Nigeria will be able to keep pace with a developed world.  I highly appreciate this action of the government . But the government should follow that no attempt can be made to collect excessive amount of TAX as it will increase illegal crypto users and no one will want to pay TAX easily.

People want:
- the coin they hold to gain value against their national currency
- not pay any tax on it
- use it legally wherever they want
- no government should ever inquire about their coins holding nor be able to seize them
- the government should be able to refund every coin they lost to a scam
- they want the ability to ask for a chargeback but only when they are the senders
- all assets in CEX should be insured by the government like bank accounts
and so on

Or in the shot, a utopia, where only what they want happens, where they have no obligations and nobody can interfere, but at the same time when they make a mistake somebody else should be blamed! That's why no matter what any authority will do or purpose, they will find a flaw somewhere!

Oh, and I already know the outcome of this taxation law, I'm willing to bet we're going to have tens of posts on how to evade the tax once this is bill passed.

We are already living this sort of adoption throughout other countries. Many of them already adopted bitcoin by taking taxes on it. The thing is, it’s unclear whether they are adoptions the bitcoin or making joke out of the user considering the tac slot is anywhere in 10-30% in different countries.

That’s insane taxation on any asset we have seen. When government imposed taxes to higher slots it does mean two things either that asset is highly regulated and precious OR it’s threatening to them. You guessed it right, in our case that’s definitely second one.

Now we have to see what Nigerian bill says about it then we can conclude the intentions.

This is old news and for your information, Bitcoin is not banned, financial institutions were only banned from engaging in the activities of bitcoin, and the government prohibits them from going in and out of bitcoin because of the underlying corruptions within their own system. The CBN was tipped that commercial banks and some of their staff were using people's money to buy bitcoin and we all know that is against the etiquette of CBN policy for commercial banks to use customers' money for their own benefits and what is not approved by them. Bitcoin is not banned in Nigeria, please do more research on the adoption of bitcoin in Nigeria.

I think the step taken by the Nigerian government regarding crypto taxes can be called a very wise step. because it is better to start to regulate than to prohibit. Through this tax policy, it will certainly bring more interest from citizens in the country. provided that the tax imposed should not be too high. because seeing cases of crypto taxes in Japan that are too high actually makes its citizens choose to trade crypto to be more closed. because high taxes will burden crypto users themselves. But I believe the government of Nigeria can take wise steps regarding crypto.

To be honest, I fail to understand how people want a lot.

What do they want a lot?
Get rich by cryptocurrency
Avoid tax on cryptocurrency
Bigger cryptocurrency adoption
Better regulation on cryptocurrency and better protection for cryptocurrency users, traders and investors

Tax is something neccessary to keep communities going. Many infrastructures in societies are built with money from taxation on citizens. Without tax, we will have less of neccessary infrastructures.

Not all things in societies can be built as community-led.

So please don't feel panic with tax on crypto. It is a good step to a brighter future for crypto. If governments want to tax on theur citizens, they should have more and better regulations which are good for this market.

Come to think that lots have already tried but eventually failed on doing so in regards or in talks about taxation but it cant really be that possible.This is why they would rather putting up much more focus into those

platforms or services whom are in connected with cryptocurrencies and since these platforms could easily be hold up into their necks then this is where taxation could possibly be imposed or would be asked out.

This is why its really that impossible for government for them to get a hold of and this is why they dont really like cryptocurrency since in the first place.
There's no way that they could able to control it.

Reading the link shared in the ops, it look like another fake media propaganda and even though the video shared shows the Vice President talking about digital inclusion into the economy, it does not directly mention taxation because the Vice President is knowledgeable enough to know how impossible it is to tax cryptocurrency most especially the decentralized coins like bitcoin, the highest the government can do is to make the naira more stronger and try to tax the naira that way they could succeed since naira is centralized and under their control aside from that cryptocurrency income tax in Nigeria will be an effort in futility for the government since the decentralized transaction can not be traced or link to any individual and if Bitcoin users want to remain under the radar for long using only p2p to avoid paying tax from using centralized exchanges such as binance exchange who happen to be the tool for government cryptocurrency taxation in many countries.

The issue at stake in Nigeria is not about the tax the government wanted to impose on crypto transactions but the ban on cryptocurrencies by the same government that directed all the banks to flagged and freeze and bank account that is linked with a crypto transactions, the government is contradicting itself with this recent anouncement, however despite that ban majority of Nigerians resorted or adopted P2P for their crypto transactions, I think the government should rescind their decision to unban the use of crypto invariably the government will generate huge amount of income via tax once the embargo on crypto is lifted.

As far as I know, things about the Nigerian government are not new for their people, because we all know there are many Nigerian bitcoiners, even here in this forum you can find many Nigerian people who are active and this big community of the Nigerian is also visible for their government and since their government seeks for a way to start milking money for people, now they have a new method to start taking tax for the investors and this time bitcoin investors, while I think the Nigerian people can easily bypass this by doing p2p transactions and do not let the government track their transactions.

The Nigeria government we know are never tired of wanting something out of nothing. The government policies so far we have known are nothing but a cashcow memorandum. I think they delving into regulations as regards blockchain and taxation of Crypto currencies are just a way forward to control and monitor transactions. Passing or voting of bill into law makes no sense as the citizens already have their ways in doing their things. I just believe the  government are wallowing in their very own shadows trying to meet up with their citizens whom are far ahead of them. Regulations and taxation on Crypto currencies makes no difference . However be the case, it is a situation of salvaging circumstances so as not to be left behind as it is already seen that their citizens do not bother about the government actions and inactions towards their economy and blockchain to be precise.

How would they tax something that they don't understand?,  Taxing cryptos Is not the problem , first of all they need understand and regulate cryptos before they talk about taxing.

I wonder how they're gonna be able to get this successful when they don't have good data system for taxing their citizens.
Too a lot of people don't use their card to purchase cryptos and many would prefer using P2P transaction to try to run away from being taxed if this is in place,

If the bill hasn't been voted on, this might not become the law. It's also an improvement over restrictive attitude to cryptos that was around before the bill, and it can be a good move if taxes are reasonable (unfortunately, I couldn't see the details in the article). In that case, it can be considered adoption of cryptos by Nigeria. If, however, the taxes are high, to discourage the usage, then I'd answer negatively. As for helping speed up adoption, it seems that Nigerians are doing well in that regard with or without the legislation. It's more about the state catching up with its people at this point.

Maybe the government want to use that strategy to know if government can also benefit from Bitcoin and cryptocurrency in the country before they can make it legal for the users to have full access to it. I guess, there are some countries that imposed tax to Bitcoin and cryptocurrency users in their countries but the users are not enjoying it like El Salvador country that made it free for their citizens. If the government will make it legal in the country by tax users , it will really help Nigeria government to tackle this high inflation that is affecting the country.

In my country the give have taxed cryptocurrency as 30% and hasn't mentioned anything about its stand on the legality. People have come to a conclusion, anything that is being taxed is considered as acceptance. In this regard people are making use of cryptocurrencies.

On the other side the government have launched the CBDC which is under trails. The government wants the people to be under their control and keep away cryptocurrencies. Many measures have been taken, yet things aren't working as the expectancy of the government. It is the people who decide what to be done amidst the announcements.

Definitely I think the government agencies aren't comfortable with the credibility of bitcoin. Some of the shedy businesses they engage with banks will eventually stop people move to bitcoin. The devaluation of the local fiat against exchange currencies which is something bitcoin will address easily isn't preferred by some individuals in government since they benefit from it. Some people are also ill informed that it and thinks it will replace fiat. Which is very wrong.

Although I will prefer its regulation than banning but how will the do it.

Moreso I am quite delight that a country like Nigeria facing inflation or ending towards recession again is looking towards bitcoin. If at all isn't a political plot to just lure people to vote them

1. They care about the taxation and noting else, many governments have a love and hate relationship with this market, they like the potential profits they can get but they do not like they cannot fully bend this market to their will.

2. There is not a clear answer to this, I doubt Nigeria tax collection agency is as strong as the IRS so tax avoidance should be way easier there.

3. Probably not, people were trading cryptocurrencies at Nigeria despite the ban by the government, so I do not see traders being happy about this change on their stance.

Nations of the world are rocking the boat of inflation and Nigeria is one of those many nations. Governments of the world aren't entirely enemies of cryptocurrency just with the fact that they don't like the idea but, its more of a regulation thing as government aren't cool with not being in control. Nigeria has become a big market in all grounds and with the current state of the national, its no surprise they are spreading there tentacles to where ever they might be able to generate funds to improve the economy of its nation.

Although, taxing cryptos is hardly an issue with Nigeria but the corrupt practices in its ranks is but, taxing it would be better than placing a ban. The result of the ban only shows an outrage participation and ensure more privacy in operating the network still.

Learned with my country have adopted set to taxes bitcoin transaction and most potential huge taxes income every month  I don't blame will allow by other country adopted tax for Bitcoin and all cryptocurrency transaction. Nigerian have huge potential with Bitcoin transaction and easy for their government get much passive income from Bitcoin tax. I don't know detail with Bitcoin have been legal transaction currency in Nigerian and set to tax for every transaction, comparison with my country Bitcoin still illegal payment currency but we have to pay tax for every transaction at local exchange market.

In my country have been 2% cut off for taxes paying each transaction when selling or buying cryptocurrency in local exchange market, beside we have to pay tax fees 2% each local currency deposit trough bank account.

I believe it does not mean they are planning towards some sort of official adoption anytime soon, actually this is just evidence of their failure to enforce a ban on Bitcoin in Nigeria (country where Bitcoin is widely adopted). In the perfect scenario of those people in the government, the e-Naira would have replaced Bitcoin completely in their country to the point nobody would use Bitcoin anymore, so they had no reason to tax transactions.

They realize they are dealing with something they can't touch, as politicians. Probably, this is some kind of measure to discourage Bitcoin adoption, considering how they have talked badly on Bitcoin before.

They're obliged to declare the purchase, but not the medium of exchange. Not at least in my place.

Chain analysis can't do much for points of sale, because that is aimed to be settled off-chain.

My understanding is this: you can't evade VAT, because you declare as a merchant what you import. It's trivial for a taxer who does a little analysis to figure out if you're evading VAT with cash transactions. But, I don't understand how he can figure out how many Bitcoin transactions you've done. How can he ensure you aren't lying to him? To put it this way: what can the government do if certain merchants decide to declare most (if not all) of their Bitcoin transactions as "cash transactions".

Well, if you buy something in a store with Bitcoin, the store will be obliged to declare it, another thing is if with blockchain analysis they can know who you are. But the states want you to declare every sale to charge you capital gains in their case. If instead of $16k you bought at $1k they will want to tax you for almost everything you spend. Just think that the EU is planning to treat all transactions with KYC, but whether they could if it is approved in the end is another matter.
 
But I don't even know why I'm explaining this to you, since I think you know all about it. If what you are aiming at is an ideal world in which most transactions are done P2P and escape the state, as I think Satoshi conceived, I think that will never happen.


If you sell me something and I pay you in Bitcoin, there is no intermediary, but we must both legally declare the transaction. Another thing is that it is not done, as I think it is not done in many transactions today, but the states know that money and power is escaping them because of that and they have started to work on it.

Each and every country wants revenue out of the transactions. Different countries have imposed tax over the transactions, but haven't taken any stand on the legality of bitcoin within the country. Already more countries have begun to legalize bitcoin usage. The latest in the list is the Brazil.

Nigeria haven't taken any decision on the legality of bitcoin. Nigeria people are much into cryptocurrency usage. Among the African nations, Nigeria tops in usage. Understanding the increasing usage of cryptocurrency by the people, the government might've taken the decision to generate revenue through taxation.

In my place, unrealized gains aren't taxed; and they shouldn't. If I sell my bitcoin at $17k, which would have bought at $16k, then that should be trivial to tax, because I realized the gain. But if I never get back on fiat, then how exactly are they going to identify my gains?

My question remains; how can there be an intermediary involved in peer-to-peer transactions? In the same way they don't know I made a purchase with cash, they don't know I made that purchase with bitcoin.

I don't think any government will adopt bitcoin, they only want the benefits of the bitcoin owners themselves, without thinking about the risks that the holders go through,
this is just my personal opinion, because in my country there is already a tax system and it applies when exchanging / trading, it's not too big but it's quite unfortunate this action, they want taxes but don't want to adopt bitcoin itself

The thing is as simple as if you have Bitcoin that you have acquired at $16k and when you buy something the price is at $17k, the government will want to charge you capital gains tax. This apart from the VAT on the product or service in question.

This would be very cumbersome to control and would force people to carry some control software.

Imagine how difficult it is to control by hand that you have a bitcoin bought at various prices and you go and pay for a coffee, the supermarket, a meal, the bus, etc. with Bitcoin. At each time you pay the price would be different.

That is why many of us advocate the establishment of a minimum exemption, which at some point there has been talk that could be $200, below which there would be no legal obligation to report transactions, but I see it difficult, because when you buy a coffee you might not have to report it but the coffee shop does have to report each sale, and with the ever increasing collection eagerness of the various states I think it will come to nothing.

Can someone clarify what it means to tax crypto transactions? As far as I can judge, government can't interfere in P2P transactions. Taxing the product isn't the same as taxing the transaction. There's obviously VAT, but it's paid whether you use cash, credit, or bitcoin. It doesn't make sense to collect more taxes from one currency than another; the medium of exchange the customer will use to the merchant is none of the government's business, as long as they pay the corresponded products' taxes.

Just because crypto is not regulated by law it doesn't mean that the government can't force you to pay taxes on the profits you made, many have called for this, saying that the government doesn't care about coins and then wake up to find letters from the IRS equivalent, as the profit you make is still profit and profit is taxable everywhere.


1. Tens of countries have established specific taxes on cryptocurrency gains yet are not moving an inch towards adoptions and have no plans on doing so.
2. It depends from county to country, in the ones where people pay their taxes they pay taxes on crypto gains also, in the ones where tax avoidance is a way of life and the citizens split their time between work and figuring way how not to pay of course it's not working that great. So it's impossible to have the same effect in Nigeria and in the US for example.
3. Nobody knows, n one extreme scenario it might actually drive a few to stop dealing with the moment the equivalent of the IRS there starts digging and inviting active traders to have a talk and take their money.

The best thing is to ask yourself what are you going to do, are you going to declare all profits down to a penny and pay all the taxes or not?
Ask a few friends and if the result is a unanimous NO, then this will of course have no effect whatsoever. And if the government sees that nobody pays, then it might restrict it even more.

Possibly, They are viewing Bitcoin as potential source of profit through tax in the long term which means Nigerian government has high hope on Bitcoin that it will be boom soon that can be interpret as they are open for Bitcoin adoption in general. They will not gonna waste time to create a law for regulating it if they are not open about it.

Other countries charge insane tax especially those who shows disapproval on the Bitcoin adoption but most of the country has a normal tax percentage on crypto. In my country, Bitcoin still doesn’t have tax because our government doesn’t care about its existence.


Speeds up adoption? It depends on how the government will promote Bitcoin when they finally charge taxes. I’m sure people will avoid investing on Bitcoin if the government charge insane amount of tax like what happened on India.

It is a very good move by the Nigerian Government but the objectives spelled out by the agency to adopt the digital currency is not favourable as for me or in my point of view. Nigerians government never and ever to create anything to provide jobs but for their personal gain. All those objectives are spelled out because of cryptocurrency then they are planning to heavily tax the bitcoiners that will be using their exchange platforms.then p2p will be the major transaction approach in the country.

May or May not be! This is a data gathering phase. Nigerian government wants to understand how many people uses cryptocurrency or what is the volume. Based on this data, they will forecast potential tax collection. If that amount excites the government, they will probably legally adopt it.


In my country, it is scaring off people due to 30% direct taxation rate without any opportunity for writing off the losses.


Depends on multiple factors! If the tax rate is low and there is a legal framework available, then it will help in adoption. Otherwise it will just scare people out of the market.

The government of Nigeria is set to place bitcoin and other crypto currencies on taxation, come next year. This is part of the country's finance bill 2022 set to be approved. The country's finance minister Ahmed Zainab discussed that the taxation will help regulate digital assets and enhance e-commerce growth.

Recall that the country's apex Bank placed a ban on transactions involving crypto currencies in February 2021. The ban lead to various other banks closing or freezing the accounts of people involved in crypto. The move lead to the current government falling out with the investors in the country.

Moreover, the ban didn't stop its citizens from trading in bitcoin . This has most of the time been done through the P2P transactions on exchanges. The continuous obsession on crypto lead the incumbent vice president to the idea that the country will be better off regulating it rather than banning.

April 2022 the country's security Exchange Commission pushed towards the move to its regulation, stating that a licenced virtual assets service provider must be secured any entity that wishes to run a crypto services within the country. The country has since witness the government leaning towards crypto currency. This has been shown by their partnership with Binance exchange in September this year. It has also offered scholarships to some selected citizens to study blockchain.

My doubts over this recent moves are:

1. Does this means the government is considering the adoption of bitcoin and other crypto currencies?

2. How has the other countries placed on crypto taxation faired so far?

3. Will its regulation helps speeds up its adoption by people within the country?


Benjamindad. Com

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