- The SEC said the latest move will capture tax revenue from crypto transactions
- A bill stipulating a framework for taxing crypto transactions and introducing other levies is currently before the national assembly. It is expected to be passed into law before the end of March this year
- Nigeria has a massive crypto market regarded as the largest in Africa and among the top five globally
Nigeria’s Exchange Commission (SEC) has said it has started developing modalities for new rules to ensure cryptocurrency transactions in the country are taxed. The move is consistent with the Nigerian government’s drive to rake in as much revenue as it can from all sectors of its economy.
Bloomberg quoted the agency as saying in an emailed response that the new regulation will “ensure that all eligible transactions on regulated exchanges are brought into the formal tax net.”
The move is not surprising to many crypto enthusiasts who have closely watched the Nigerian SEC and monitored the statement of its Director General, Dr. Emomotimi Agama, who has said his agency is open to utilizing the industry to the country’s advantage.
The agency said the latest move will capture tax revenue from crypto transactions. Nigeria has a massive crypto market regarded as the largest in Africa and among the top five globally. The country’s large, tech-savvy, youthful population drives the large market.
While not providing the estimated revenue from the sector, the agency said that a “substantial amount of tax revenue will accrue from cryptocurrency transactions.”
In the recent past, the agency has assured investors that it is working to make the space safe and inclusive, adding that it is working to introduce modalities that use blockchain technology.
“We anticipate gradual traction toward centralized exchanges because they will provide greater protections and comfort for investors,” the SEC told Bloomberg.
A bill stipulating a framework for taxing crypto transactions and introducing other levies is currently before the national assembly. It is expected to be passed into law before the end of March this year.
The SEC also said it was looking to extend the scope of crypto licensing, including issuing permits that will enable residents to trade in formal centralized exchanges where transactions can be monitored and taxed.
Recall that in August last year, the agency granted approval-in-principle to Busha Digital Limited and Quidax Technologies Limited under its Accelerated Regulatory Incubation Programme (ARIP).
The SEC introduced the ARIP at the time to strategically on-board firms that had commenced operations before the release of the rules on virtual asset service Providers in May 2022. Conversely, the RI Program was created to assess the business models of digital asset firms and test innovative products, services, and technology in a real-time market environment under the close supervision of the SEC.
Real reasons EFCC suddenly dropped charges against detained Binance exec Gambaryan
Meanwhile, TheRadar earlier reported that the federal high court in Abuja discharged Binance executive Tigran Gambaryan, who had been detained in Nigeria since February 2024.
Gambaryan was standing trial on charges related to the money laundering perpetrated on the Binance crypto exchange. Officials said bad actors used the platform to launder over $35 million. Gambaryan is a US citizen and, until his detention, was head of financial crime compliance at Binance.
