Nigeria Planning to change its tax laws to target digital assets as the sector continues to grow despite a massive degradation in 2024.
Securities and Exchange Commission (SEC) leads the driving force to tax digital asset transactions And expect legislators to adopt the new laws at the end of March.
A proposed bill lying in Parliament “will ensure that all justified transactions on regulated exchanges are entered into the formal tax network”, the agency told Bloomberg.
Nigeria implemented a new License frame for digital asset exchanges 2024, and currently only two exchanges have received approval in the principle of serving nigeries: Busha and Quidax. SEC has also recognized four others in its incubation program to test their business models under its watch.
The agency considers that taxation of digital assets will provide a “significant amount of tax revenue”, even if it declined to indicate its target income.
For context, Kenya collected $ 78 million In taxes during the financial year 2023-24 from 384 digital assets, according to the country’s taxman. With Nigeria’s digital asset market, substantially greater than its East African counterpart, it can generate much higher revenue.
President Bola Tinubus government have set An ambitious target of 25 trillion Naira ($ 16.6 billion) in federal taxes for 2025 after exceeding its goal last year. In addition to taxes, SEC says it intends to increase the extent of its VASP licenses to include more companies this year. 2024 led a lively degradation of offshore exchanges to the fact that global leaders were suspended as KukoinThe Coin base (Nasdaq: Coins) and Binance in Nigeria. While traders chose these global exchanges for their lower fees, the SEC believes that over time they will switch to regulated exchanges.
“We expect gradual traction against centralized exchanges because they will provide greater protection and comfort for investors,” it abandoned.
SEC is one of several supervisory authorities in Africa that rushes to regulate digital assets as the industry continues to grow across the continent. According to Chris Maurice, CEO of Pan-African Exchange Yellow cardThis urgent has been raised through the election of Donald Trump in the United States.
“This gives us more confidence that you will see sweeping regulatory change during the African continent next year or so abandoned.
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