KuCoin, a cryptocurrency exchange, has recently announced a significant update for its users in Nigeria. Starting July 8, 2024, a 7.5 per cent Value-Added Tax (VAT) will be applied to transaction fees on the platform. This means that for each trade, the 7.5 per cent tax will be calculated based on the transaction fee, not the total trade amount.
The exchange clarified that this VAT collection is a regulatory requirement for users in Nigeria and will be enforced on all transaction types on KuCoin. This move aligns with Nigeria’s broader tax regime outlined in the Finance Act, which included a 10 per cent tax on profits from digital assets, including cryptocurrencies.
Additionally, KuCoin halted peer-to-peer (P2P) trading and fast buy services via naira card on May 15, 2024, following regulatory actions by the Securities and Exchange Commission. This decision comes in the wake of heightened scrutiny on cryptocurrency platforms in Nigeria, particularly after the departure of Binance amid accusations of exchange rate manipulation.
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