Nigeria to Tax Crypto Gains Amid New Regulations

Nigeria is advancing its digital asset regulations to incorporate a 10% tax on capital gains from cryptocurrency transactions, aiming to boost government revenue. This initiative is part of the 2023 Finance Act and is accompanied by a bill under review that seeks to formalize the taxation of digital assets on regulated exchanges. The Nigerian Securities and Exchange Commission (SEC) is also intensifying efforts to license crypto exchanges, which is expected to enhance investor confidence and regulatory oversight. While this move is seen as a positive step toward formalizing crypto within Nigeria's financial system, it has raised concerns among investors about potential impacts on market participation, with exchanges like KuCoin already implementing tax measures such as a 7.5% VAT. Nigeria's ongoing regulatory actions, including its standoff with Binance, underscore its commitment to establishing a structured environment for digital assets.