Bank

<ul>
 <li>The transaction fees, and not the overall transaction volume, will be subject to this VAT.</li>
 <li>Trading on KuCoin would become more expensive for Nigerians as a result.</li>
</ul>
The cryptocurrency exchange <a href="https://thenewscrypto.com/kucoin-delists-ausd-announces-acquirement-plan-for-holders/" target="_blank" rel="noopener noreferrer nofollow">KuCoin</a> has stated that transaction fees will henceforth be subject to a 7.5% VAT. Those Nigerian users who have completed the KYC registration process will be hit by this new charge. The transaction fees, and not the overall transaction volume, will be subject to this VAT as of July 8.
Trading on KuCoin would become more expensive for <a href="https://thenewscrypto.com/nigeria-updates-digital-asset-policies-launches-compliance-program/" target="_blank" rel="noopener noreferrer nofollow">Nigerians</a> as a result of the new VAT policy. Even if the foundation for computation is clear, there are still concerns about charging VAT while the government continues to prohibit crypto websites, including KuCoin. The stakeholders in Nigeria’s cryptocurrency ecosystem are worried about the timing and regulatory ramifications of this move.
<h3 class="wp-block-heading" id="h-further-complicating-matters">Further Complicating Matters</h3>
The president of Nigeria’s Blockchain Industry Coordinating Committee (<a href="https://biccon.com.ng/#:~:text=ABOUT%20BICCoN&amp;text=The%20interplay%20of%20opportunities%20and,opportunities%20while%20mitigating%20the%20threats." target="_blank" rel="noopener noreferrer nofollow">BICCoN</a>), Lucky Uwakwe, brought attention to possible difficulties in implementing the new fee. He raised concerns about the government’s ability to control the transfer of tax revenues, confirm user counts, and guarantee correct trade reporting. Compliance and openness may be hampered in the absence of specific instructions on these fronts.
The Central Bank of Nigeria’s (<a href="https://www.cbn.gov.ng/" target="_blank" rel="noopener noreferrer nofollow">CBN</a>) restrictions on the conversion of cryptocurrency to fiat currency further complicate matters. Given these budgetary constraints, KuCoin’s plans for remitting the VAT collected are unclear. Given the existing rules, this situation raises the question of whether banks would process transactions using cryptocurrency.
The imposition of value-added tax on cryptocurrency transactions by KuCoin may signal a change in official stances about the legitimacy of digital assets. Several analysts think the value-added tax is a good first step toward formally recognizing cryptocurrencies as legal tender in Nigeria.
Highlighted Crypto News Today:
<a href="https://thenewscrypto.com/ripple-advocate-predicts-end-of-sec-case-in-july/" target="_blank" rel="noopener noreferrer nofollow">Ripple Advocate Predicts End of SEC Case in July</a>

Transactions Fees on KuCoin to Incur 7.5% VAT for Nigerian Users

Table of Contents

TheNewsCrypto

Other articles published on Jul 3, 2024

Santiment Reveals Top Three Altcoins to Buy in the Midterm

Chibi Clash Launches Kingdoms Alliance Event

Dogecoin Price Loses Its Ground In Market; Why Recovery Is Less Likely?

Ripple Intensifies Defense With New Submission In SEC Case

Crypto Analyst Says Next Bitcoin Target Is $78,700 If BTC Breaks This Resistance

TAO Token Dives 14% as Bittensor Blockchain Halts Operations

Join our free newsletter for daily crypto updates!