Bitcoin Forum

The federal government of Nigeria have made a fresh statement about digital currencies, via the president represented and aimed at taxation of digital currencies transactions, their mandated the CBN and Office of the National intelligence to monitor and record all transactions done via cryptocurrencies.

Reason for such step:
The government noticed a diversion of transactions from the traditional banking system towards digital currencies as form of payment.

What that means is that most Nigerians are now using cryptocurrencies to make payments like buying houses and cars etc via cryptocurrencies instead of the usual banking system.

This shows that cryptocurrencies is playing it role as an alternative to the traditional banking system.

Good thing is that, the present government have through it recently recognized digital virtual assets as taxable assets that means legal tender, unlike previous government that give a total banned to all that digital assets ownership.

What do you think will be the future of cryptocurrencies in this current administration?

There is nothing they can do to stop cryptocurrency transactions as an exchange for goods and services in Nigeria, crypto is not integrated with traditional payment system to track the usage or how it's been spent, everything is decentralized without payment description before making transaction.

If a seller notice government are tracking crypto payment for business, they can actually give out the receipt to be in Fiat payment while the transaction was done otherwise. No tracing can be done and nothing to do about it.

OP didn't mention that government were against the use of cryptocurrencies for payments, he stated that taxes are now going to be imposed, which signifies embracement of digital currency instead of forbidding them, we are slowly creeping into more adoption, when it last longer as being legal, more institute will embrace payment options in crypto.

I don't know how you plan to do this, explain better for more understanding.

I try to ramp my head around that to understand how that works, logically.

You want to buy a car that is worth ₦12 million, you asked the seller if he can accept bitcoin, he accepted bitcoin but instead he wrote ₦12 million in the receipt that he gave you. That means no tracing at all.

But with how Nigeria is right now, I do not think this should be what the government should be bothered about, Nigerians are still using naira for almost all what they are doing locally and even intentionally.

I don’t really agree with the idea of the CBN and intelligence agencies monitoring every crypto transaction. Crypto is not like regular bank transfers that the government can easily track. Crypto is built on independence and decentralization. If the government tries to cage it too much, they might ruin the whole system and discourage people from using it.
It would be better if the government does not over control it. Instead, they should create friendly regulations that allow Nigerians to enjoy crypto freely.

The use of Bitcoin is progressively initiated in our country today and that is a good start to the digital world as it's use is flexible and can be used at any point in time.

But this idea of the federal government implementing the payment of tax for transactions would affect the usage of Bitcoin and the necessary satisfaction needed wouldn't be attained as Bitcoin has being said to be decentralized.

You would have attached a link of the news to this thread to make it real to this community op, this new administration we know very well, that they are against cryptocurrencies users in the country and you believe they will allow cryptocurrency users to buy car, house and other things in the country and pay with bitcoin? I don't think such thing will happen in this administration because some of the binance officials naija officers arrested are still in the detention for the illegal decentralized exchange transactions they involved in the country, not that am not happy if the government allow cryptocurrency users to buy things and pay with bitcoin in the country because that is what cryptocurrency users in the country are praying for, so that users will be introducing cryptocurrency to their various business.

Interesting move by the government. On one hand, recognizing crypto as taxable assets is a big shift from the old outright ban, and it indirectly gives some legitimacy to the space. On the other hand, involving CBN and National Intelligence for monitoring shows they are still more concerned about control and revenue than real adoption.

For the future, I think crypto will keep growing regardless of policy, because people are already using it to bypass naira instability and weak banking structures. The best outcome would be if this administration builds proper regulations that encourage innovation instead of just focusing on taxation. If they balance control with opportunity, Nigeria could actually lead Africa in crypto adoption.

All this thing they're doing is just because they are not getting any taxes again from those transactions because instead of how individuals with current account are usually taxed on every amount that drop on there account, accepting Bitcoin would definitely keep them free from such taxes but however how would the Government intend to enforce this taxes since they do not even no the individuals or companies who accept or allow Bitcoin so actually if you ask me they have come very late on this matter because Bitcoin is not a bank account the CBN has the access to no how everybody is doing in the aspects of transaction and besides they have made everybody to fear in relying on them to be government who would come to love cryptocurrency.

I gree with you for this one, tax is they major concern when it comes to all of this thing with regulation and licensing, most of their aim is towards centralization that make them able to monitor how much each account recieved and tax be applies to that transactions, but like you said, they are late on this since majority if bitcoin users in Nigeria have access to information that further keep them above the radar when it comes to cryptocurrency transactions based on decentralized networks.

Cex users will definitely be the most vulnerable to this tax regimes and innthe year 2026 all thos tax regimes ofnthe present administration qill definitely take a new dimensions.