KuCoin, a top crypto-currency platform, has announced that it will begin collecting Value-Added Tax (VAT) on transaction fees for users in Nigeria.
This change is set to take effect on July 8th, 2024, and comes in response to new regulatory requirements.
According to the announcement, users whose Know Your Customer (KYC) information is registered in Nigeria will incur a VAT rate of 7.5 per cent on transaction fees for each trade conducted on the KuCoin platform.
The VAT will be specifically applied to the transaction fees, not the transaction amount. This policy will cover all types of transactions available on the KuCoin platform.
The platform said the measure aims to align with local tax regulations and ensure compliance with the country’s financial policies.
“VAT will be applied specifically to the transaction fees, not the transaction amount. This policy will cover all transaction types available on the KuCoin platform,” it said.
Recall that in May 2024, KuCoin suspended all Naira transactions on their Peer-to-Peer (P2P) trading platform, highlighting ongoing adjustments in response to regulatory concerns in Nigeria.
Nigeria will be one of the first countries in Africa to tax cryptocurrency directly.