New Tax Laws, Crypto Trading Platform Target $400m Nigerian Cryptocurrency Market

The Federal Inland Revenue Service (FIRS) has revealed plans to introduce new tax laws for Nigeria’s cryptocurrency market, valued at $400 million, by September 2024.

This move aims to regulate the unregulated crypto market, which has been linked to Naira depreciation and an outflow of $26 billion.

The Securities and Exchange Commission (SEC) has also announced plans to issue licenses to virtual/digital asset providers, including cryptocurrencies, as early as August 2024.

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Analysts believe that regulatory approval will drive more participation in the crypto market, leading to a structured and functional digital asset market.

The Nigerian SEC has launched a new program to speed up the registration process of Virtual Assets Providers (VASPS) and has announced amendments to its rules on Digital Assets Issuance, offering platforms, Exchanges, and Custody.

In an interview on Bloomberg, Nigerian SEC Chief Emomotimi Agama reiterated his commitment to regulating cryptocurrency in Nigeria, citing the need to protect young Nigerians involved in the industry.