WATCH THE VIDEO HERE The Securities and Exchange Commission (SEC) is currently developing new rules aimed at ensuring that all eligible transactions on regulated cryptocurrency exchanges are brought into the formal tax net. According to a Bloomberg report, the SEC disclosed this in an email response to the publication’s questions. SEC stated that the proposed rules are designed to capture tax revenue from cryptocurrency transactions, which have gained widespread popularity among Nigeria’s youthful and tech-savvy population. The SEC acknowledged the “substantial amount of tax revenue that will accrue from cryptocurrency transactions,” though it did not provide specific estimates on the expected revenue. Cryptocurrencies have become increasingly popular in Nigeria, particularly as a hedge against high inflation and the steep depreciation of the naira against the US dollar since mid-2023. “We anticipate gradual traction toward centralized exchanges because they will provide greater protections and comfort for investors,” the SEC stated. A bill outlining a framework for taxing crypto transactions and introducing other levies is currently before the National Assembly and is expected to be passed into law this quarter. Last August, Nigeria’s SEC announced that it had granted an Approval-in-Principle to two crypto exchanges Quidax and Busha, greenlighting its readiness to regulate the crypto industry in the country. It added that other applications received are being assessed and would be granted Approval-in-Principle on a case-by-case basis as they meet all its requirements.
SEC moves to tax cryptocurrency transactions in Nigeria with new rules
