Binance: Crypto platforms impose 7.5VAT on transactions

Binance: Crypto platforms impose 7.5VAT on transactions

Cryptocurrency firms operating in the country have started to implement a 7.5 per 7.5-cent Value Added Tax on all transactions carried out on their platforms

The development came a few months after the Federal Government charged Binance for reportedly failing to pay taxes.

on profits from digital assets, encompassing cryptocurrencies.

Kucoin, which operates globally, suspended all peer-to-peer (P2P) trading and fast-buy services via naira on May 15, 2024.

This decision came after the Securities and Exchange Commission stopped P2P transactions across all cryptocurrency platforms.

In recent months, cryptocurrency platforms have been subjected to intense scrutiny following the exit of Binance, which was accused by the Nigerian government of manipulating the naira-to-dollar exchange rate.

Binance was charged with four counts of tax evasion, including failing to pay company income tax and value-added tax, alongside its executives, Tigran Gambaryan and Nadeem Anjarwalla. However, the FIRS later dropped the charges against the executives and named only Binance as the defendant.

The exchange was accused of failing to register for tax purposes with Nigerian authorities and facilitating tax evasion for its users.

The tax issues were part of a broader investigation by Nigerian authorities into Binance’s alleged attempts to manipulate the country’s currency.