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Regulation: After “An Important Regulatory Update,” KuCoin will impose a 7.5% value-added tax (VAT) on cryptocurrency transactions in Nigeria.

KuCoin, a cryptocurrency exchange, has announced that it will begin charging its Nigerian users 7.5% value-added tax on trading costs from July 8, 2024.

“We are writing to let you know about a significant regulatory update that affects our Republic of Nigerian users,” stated KuCoin. “We will start collecting Value-Added Tax (VAT) on transaction costs in every trade for consumers whose KYC information is recorded in Nigeria on July 8, 2024, at a rate of 7.5 percent.”

KuCoin states that the 7.5% fee will be charged on the transaction fees associated with each trade, not the whole transaction value. It further stated that all transaction kinds that Nigerian users can complete on the platform are covered by the cost. Even while ByBit and Binance, two other cryptocurrency trading platforms in the nation, have not yet disclosed such tax measures to their users, the company justified its recent action by citing “an important regulatory update.” The action was taken a little more than a week after the Nigerian Securities and Exchange Commission (SEC) sent out a notice requesting that local cryptocurrency companies submit an application for registration under the revised guidelines within 30 days.

Earlier this year, when the federal government tightened down on cryptocurrency enterprises, KuCoin was one of the exchanges that banned parts of its services, including P2P.

“We will temporarily suspend all P2P Nigerian Naira (NGN) services and Fast Buy service via Naira cards, effective from 2024-05-15 08:00 (UTC).” KuCoin stated at the time, “We will be concentrating on guaranteeing compliance and building a more robust and secure environment for all of our users during this brief pause.”

Authorities in the nation have been closely monitoring exchanges because they think cryptocurrency platforms encourage speculation and possible exchange rate manipulation. Additionally impacted were Quidax, Binance, and Coinbase.

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