Nigeria Planning to Present Law to Tax Crypto by September: Report

[Blaze]

I hope the Nigerian government can do better than just placing taxes on cryptocurrencies. They should also standardize the regulations by trying to protect the crypto community within Nigeria. A lot of people needs to continue to be safe in the hands of the government using the cryptocurrencies rather than placing taxes and still making people uncomfortable with using bitcoin amongst other cryptocurrencies.

After trying several times to make sure cryptocurrency goes down in the country because they can’t regulate the money crypto users generate and after failing to succeed now they are back trying to enact a law to tax cryptocurrency. They just don’t want to give up after suspending P2P services in major exchanges to shut down crypto in the country, i think this is the best they can actually do and try to tax crypto instead of trying to ban the use of crypto in the country.

I believe this government move does make sense. When other measures did not work including the freezing of bank accounts associated with such coins, they resorted to more practical measures by including taxes. This might be a better approach as opposed to completely banning the operation and management of cryptocurrencies. Taxes enable them to continue enjoying the transactions that take place while affording them better control, so this is undoubtedly a more reasonable solution within this challenging context.

[erus]

I see some of you discuss 7.5% tax on KuCoin trading fee. I'm aware it sounds big, but it's smaller than you expect after seeing this example calculation.

Example Calculation:

Transaction: Buy 1,000 USDT worth of BTC
Fee: 1 USDT (0.1% fee rate)
Tax: 0.075 USDT (7.5% of the fee)
Net Amount for Transaction: 998.925 USDT

if you look at the calculation you stated for a fee of 1000 dollars, it's also small, because I see the fee charged is around 2 dollars. I don't really understand the calculation of crypto taxes like that, but I appreciate this because the crypto tax is not too much. And if calculated with hundreds of thousands of trades every day from various users, KuCoin or all CEXs in the world must have very large profits.

[Sarionadukecom]

I see some of you discuss 7.5% tax on KuCoin trading fee. I'm aware it sounds big, but it's smaller than you expect after seeing this example calculation.

Example Calculation:

Transaction: Buy 1,000 USDT worth of BTC
Fee: 1 USDT (0.1% fee rate)
Tax: 0.075 USDT (7.5% of the fee)
Net Amount for Transaction: 998.925 USDT

if you look at the calculation you stated for a fee of 1000 dollars, it's also small, because I see the fee charged is around 2 dollars. I don't really understand the calculation of crypto taxes like that, but I appreciate this because the crypto tax is not too much. And if calculated with hundreds of thousands of trades every day from various users, KuCoin or all CEXs in the world must have very large profits.

Is crypto tax even feasible for users??. Isn't it the exchange duty to comply if at all. They collect trading fees fgs

[Rubel007]

I hope the Nigerian government can do better than just placing taxes on cryptocurrencies. They should also standardize the regulations by trying to protect the crypto community within Nigeria. A lot of people needs to continue to be safe in the hands of the government using the cryptocurrencies rather than placing taxes and still making people uncomfortable with using bitcoin amongst other cryptocurrencies.

After trying several times to make sure cryptocurrency goes down in the country because they can’t regulate the money crypto users generate and after failing to succeed now they are back trying to enact a law to tax cryptocurrency. They just don’t want to give up after suspending P2P services in major exchanges to shut down crypto in the country, i think this is the best they can actually do and try to tax crypto instead of trying to ban the use of crypto in the country.

I believe this government move does make sense. When other measures did not work including the freezing of bank accounts associated with such coins, they resorted to more practical measures by including taxes. This might be a better approach as opposed to completely banning the operation and management of cryptocurrencies. Taxes enable them to continue enjoying the transactions that take place while affording them better control, so this is undoubtedly a more reasonable solution within this challenging context.

I think the Nigerian government has arrived at a logical solution. Countries where the number of crypto users is growing rapidly if they didn't take such steps I think they would have avoided getting taxes which would have been one of the reasons of loss for their country financially. No country's government can regulate cryptocurrencies. So those who can quickly adopt this crypto by charging taxes in advance will benefit more. Freezing bank accounts or fear of legal complications can never stop the demands of the common people in the long run. Currently, Nigeria is one of the notable countries using crypto. I think the government has taken an appropriate decision.