The Federal Inland Revenue Service (FIRS) is taking steps to regulate the cryptocurrency industry in Nigeria.
The FIRS Chairman, Zacch Adedeji, announced that the agency will seek the National Assembly’s support to create a law that would govern the use of cryptocurrency in the country.
This proposed law aims to establish a legal framework for taxing cryptocurrency, which would contribute to Nigeria’s economic growth.
In addition to the new crypto regulations, Adedeji revealed that a bill would be introduced in September 2024 to overhaul Nigeria’s tax system.
This bill would simplify and update existing tax laws, including the outdated Stamp Duty Act of 1939.
Currently, there are no specific laws in Nigeria regulating cryptocurrency, despite its increasing significance. However, the government has recently taken steps to bring more structure to the industry. For instance, a 7.5% Value-Added Tax (VAT) was imposed on cryptocurrency transaction fees.
The Central Bank of Nigeria also lifted its ban on banks operating accounts for crypto service providers, showing a shift towards a more regulated approach.
Cryptocurrency platforms, such as Binance, have come under scrutiny, particularly regarding allegations of manipulating the naira-to-dollar exchange rate.
This increased attention highlights the need for clear regulations in the industry.
