Nigerian crypto tax move is ‘premature’ — Local stakeholders

[Charles-Tim]

Although, this is not new to us on this local board. In the Financial Act 2023, 10% capital gain tax for bitcoin and other cryptocurrencies was included and has been signed. But how about crypto regulation in Nigeria?

The president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), Obinna Iwunna, has commented on the implementation of the Finance Act, 2023, which was signed into law on May 28. According to Iwunna, the successful execution of the law will be challenging due to its premature introduction.

Continue to read on this link there are more to read: https://cointelegraph.com/news/nigerian-crypto-tax-move-is-premature-local-stakeholders

We have people of wisdom in Nigeria, but why the process to do something correctly is hard in the country. Nigeria need to be fast on regulating cryptocurrencies. The suspended CBN president failed to see how Nigeria government will earn from regulating cryptocurrencies, how cryptocurrencies will increase Nigeria economic growth and development and how it will increase employment. Even without regulation, employment increased and many Nigerians depends on crypto job as of today.

The SEC regulates securities and commodities in Nigeria, no doubt they are the best for this and work with law makers. I have not seen any law maker that is directly interested in crypto regulation. Also nothing about it coming from the president or the ministry of finance. SEC needs to be fast about this and work with ministry of Finance and the law makers. Or any of them should be fast about this.

In Africa, Namibia has passed a bill to regulate cryptocurrencies. South Africa will finally have a bill to regulate cryptocurrencies by the end of this year. When is Nigeria crypto regulation coming?

https://cointelegraph.com/news/nigerian-crypto-tax-move-is-premature-local-stakeholders
https://cryptonews.com/news/namibia-passes-bill-for-licensing-regulating-virtual-asset-service-providers.htm
https://www.bloomberg.com/news/articles/2023-07-04/south-africa-to-require-crypto-exchanges-licensing-by-year-end

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[Zanab247]

Based on the process on ground and the steps this new government has took about BTC and crypto so far, I think before the end of this year 2023 we will celebrate that our government have sign the bill to regulate cryptocurrencies in the country and to be among the African countries that is regulating BTC and crypto. OP, I don't think we need to worry too much about this regulation of cryptocurrencies because, those guys in the administration really show interest on BTC and crypto in the country which they will do everything possible within their skills to make sure regulation of BTC and crypto stand in the land, and to improve the citizens financially and also improve the government economy.

[Agbe]

Well I see Nigeria government as very weak in Cryptocurrency matters dem no no the important of di crypto things in the country. Nigeria would have been the first country in Africa to adopt, accept and regulate cryptocurrency but they are Sceptical about the technology. The ministry of technology and the ministry finance would have work Hand in hand to achieve their new development in the world. But the ministry of technology is ill staff so they don't even understand the stuff. Nigeria is the Cryptocurrency giant in Africa yet Namibia has done their regulation and South Africa is doing their at the end of the year. These are good examples.

[sokani]

In the topic I created about the Nigerian crypto taxation law, one of the questions I asked was how are they going to achieve this. Even in developed nations with better infrastructures, they are still going to find it difficult to get most of the individual users to pay tax, is it Nigeria that's going to be able to do it? Wey everything dey jaga jaga? Maybe e go just end up as audio talk. I totally agree with what the SIBAN president said that the crypto tax is premature. Even if they decide to follow the Belarusian government proposed approach, it's still not going work. Regulation of cryptocurrency would have been the first step. Sidon look na dog name. If we wan cement ourselves as giant of Africa, we better get up join bodi follow wetin our sister countries dey do like Namibia and South Africa.

[Mate2237]

I am even tired of the whole issue in the country. So I focus on my investment and p2p services and live on. Anytime they are ready adopt bitcoin and if the regulations are favourable then I follow suit. It is still premature because they are looking for way to tighten the regulation so they can control the system very but they are forgetting that they coming a system that is decentralized so the total control of the system is not possible. Nigerian leaders have never made anything good thing in the country matured but always premature. If Dis government e no acknowledge cryptocurrency for two years then it is gone be dat till di next president nai we fit see am because by then cryptocurrency e done gain ground well well in the world currency market. Now Nigeria government s dey doubt am because many countries never accept am.

[nelson4lov]

I don't know if it's just me but I no dey too excited about regulation of cryptocurrencies in Nigeria. I see the Financial Act of 2023 as just a move by FG to capitalize on the crypto boom in Nigeria and benefit from it. This current is just milking money out everything and we're not sure there's going to be any development with the money coming from crypto tax.

Also, regulations go against the original purpose of Bitcoin in the first place. And e go dey very difficult to achieve because most crypto guys maintain full anonymity of their assets and online presence. Goodluck to FG to try and doxx people. No infrastructure, provisions or clear guidelines for the use of crypto in Nigeria but they want to tax anyone involved in crypto.

[Wiwo]

I don't know if it's just me but I no dey too excited about regulation of cryptocurrencies in Nigeria. I see the Financial Act of 2023 as just a move by FG to capitalize on the crypto boom in Nigeria and benefit from it. This current is just milking money out everything and we're not sure there's going to be any development with the money coming from crypto tax.

Also, regulations go against the original purpose of Bitcoin in the first place. And e go dey very difficult to achieve because most crypto guys maintain full anonymity of their assets and online presence. Goodluck to FG to try and doxx people. No infrastructure, provisions or clear guidelines for the use of crypto in Nigeria but they want to tax anyone involved in crypto.

Boss not only but me also, I never wanted to comment on the topic but your comment motivated me to support your point with a few extra reasons.

Nigeria is long overdue for cryptocurrency regulation but since they have failed in that regard, I am certain and ok that it will remain that way for a long since even the current government and the so-called new tax regime in Nigeria do not cover that in detail.

Nigeria government first needs to nullify the former CBN governor's policy on cryptocurrency by replacing it will well-drafted regulations that will guide crypto activities in the centralized market and license all the cryptocurrency-related subsidiaries located within the country that way the 10% tax could be easily generated and guideline given to that cryptocurrency platform.

[Cryptomultiplier]

Our government will come around finally.
I believe so because our colonial master, UK, has gone ahead to regulate and endorse the use of cryptocurrencies for business or individual purposes.
The former CBN governor and the government may have battled hard to discourage cryptocurrencies, hence the case of taxing it if it must be used, but the fear may have been a repercussion of the MMM saga that struck the nation and saw people loose loads of funds. Also, the FTX saga too.

I also think the snail paced movement by FG on this issue might be a way to punish the youths mostly, because of the EndSars protest that caused quite an uproar and how it was in the news that crypto holders sponsored the match.

[Coyster]

How dem go wan gain from tax on crypto when the CBN ban crypto transactions and directed banks make dem no dey run crypto transactions, that one no make sense na. If Nigerian government know say dem wan dey collect money from tax, then make dem come out clean tell us their mind about crypto, make we know wetin the guidelines/regulations be, as e be so for Naija nobody really know wetin be the government/SEC stand on crypto, but dem want tax, e no make sense.

[Zaguru12]

How dem go wan gain from tax on crypto when the CBN ban crypto transactions and directed banks make dem no dey run crypto transactions, that one no make sense na. If Nigerian government know say dem wan dey collect money from tax, then make dem come out clean tell us their mind about crypto, make we know wetin the guidelines/regulations be, as e be so for Naija nobody really know wetin be the government/SEC stand on crypto, but dem want tax, e no make sense.

Personally I think Also Nigeria government is still confused regarding this cryptocurrency issue because the past administration towards the end were actually relaxing the restrictions placed on it and when this new government came into power I thought they would do the same thing but they are yet to take a concrete stance on it. Although I believe this present government will actually look into cryptocurrency because from their few policies it looks like they bent on taxing everything. But just like other top countries the first thing is to provide an enabling environment for some of these exchanges trying to get into Africa and then make Nigeria a hub for cryptocurrency in the continent. Then they can regulate this exchanges and if done successfully translate it to individuals.

[Charles-Tim]

I don't know if it's just me but I no dey too excited about regulation of cryptocurrencies in Nigeria. I see the Financial Act of 2023 as just a move by FG to capitalize on the crypto boom in Nigeria and benefit from it. This current is just milking money out everything and we're not sure there's going to be any development with the money coming from crypto tax.

It is good for the government to earn money from taxing cryptocurrencies. Crypto regulation will go beyond taxation, it will also help in adoption and more progress.

Also, regulations go against the original purpose of Bitcoin in the first place. And e go dey very difficult to achieve because most crypto guys maintain full anonymity of their assets and online presence. Goodluck to FG to try and doxx people. No infrastructure, provisions or clear guidelines for the use of crypto in Nigeria but they want to tax anyone involved in crypto.

You only mean that centralized exchanges and other thing that is centralized go against the original purpose of bitcoin, but most people today are using centralized exchanges to buy and sell bitcoin. Crypto taxing may be difficult and many people will evade it, but at least, it is better than nothing.

[letteredhub]

I agree that the signatory to cryptocurrency taxation is so quick and premature but on the other way round this could lead to cancelation of the restrictions and hassles cryptocurrency and it's enthusiasts are battling with in the country. This may not be immediately but I think the process has just only begun. Premature or not let's be hopeful and keep the criticisms aside for now, the current administration is still young in office.

[Odohu]

Although, this is not new to us on this local board. In the Financial Act 2023, 10% capital gain tax for bitcoin and other cryptocurrencies was included and has been signed. But how about crypto regulation in Nigeria?

The president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), Obinna Iwunna, has commented on the implementation of the Finance Act, 2023, which was signed into law on May 28. According to Iwunna, the successful execution of the law will be challenging due to its premature introduction.

Continue to read on this link there are more to read: https://cointelegraph.com/news/nigerian-crypto-tax-move-is-premature-local-stakeholders

We have people of wisdom in Nigeria, but why the process to do something correctly is hard in the country. Nigeria need to be fast on regulating cryptocurrencies. The suspended CBN president failed to see how Nigeria government will earn from regulating cryptocurrencies, how cryptocurrencies will increase Nigeria economic growth and development and how it will increase employment. Even without regulation, employment increased and many Nigerians depends on crypto job as of today.

The SEC regulates securities and commodities in Nigeria, no doubt they are the best for this and work with law makers. I have not seen any law maker that is directly interested in crypto regulation. Also nothing about it coming from the president or the ministry of finance. SEC needs to be fast about this and work with ministry of Finance and the law makers. Or any of them should be fast about this.

In Africa, Namibia has passed a bill to regulate cryptocurrencies. South Africa will finally have a bill to regulate cryptocurrencies by the end of this year. When is Nigeria crypto regulation coming?

https://cointelegraph.com/news/nigerian-crypto-tax-move-is-premature-local-stakeholders
https://cryptonews.com/news/namibia-passes-bill-for-licensing-regulating-virtual-asset-service-providers.htm
https://www.bloomberg.com/news/articles/2023-07-04/south-africa-to-require-crypto-exchanges-licensing-by-year-end

9ja never sitdon well for crypto, why the rush to for taxing it. Abi government just wan chook eye anywhere them hear say youth dey get money from? How our government don help the average youth for this our country self? Make them just dey play, make we see as them wan take tax people doing p2p trading.

[CryptopreneurBrainboss]

We have people of wisdom in Nigeria, but why the process to do something correctly is hard in the country. Nigeria need to be fast on regulating cryptocurrencies. The suspended CBN president failed to see how Nigeria government will earn from regulating cryptocurrencies, how cryptocurrencies will increase Nigeria economic growth and development and how it will increase employment. Even without regulation, employment increased and many Nigerians depends on crypto job as of today.

Our problem for this country just circle round the former CBN governor, dat guy was a cancer in our economy. Nothing wey him do wey favor the economy of the country. Na only to dey put laws wey go take us backwards na wetin sabi. What's the need of taxing crypto when it isn't regulated in the county. Na only money mata wey we dey rush sign, we no go do the one wey go make the citizens survive and encourage more business and people to enter the cryptocurency market. E dey do me like say the government rush passed that taxation bills so dem fit dey suck all this crypto companies wey dey country dry.

Dem no go create a conducive environment for business to prosper with regulations yet dem wan dey tax dem. The taxation no be bad thing oh like e good say government dey take tax as na very good way for government to dey gather money way dem go use package the country but what about the regulations of the industry. To do business for this country na big wahala. As of now the taxation wasn't necessary or abi US dun passed their own taxation bill because this country sabi follow follow (maybe na why dem hurry go pass the bill). Anyway sha I just hope say as the taxation bill dey take effect e go make governments to begin reason regulating the industry.

[Charles-Tim]

As of now the taxation wasn't necessary or abi US dun passed their own taxation bill because this country sabi follow follow (maybe na why dem hurry go pass the bill). Anyway sha I just hope say as the taxation bill dey take effect e go make governments to begin reason regulating the industry.

United States do not use tax to joke. Since 2020, I have known about crypto tax in United States. It even went up in percentage some months ago (I may not be correct about the increment). 10 - 37% capital gain tax for holding bitcoin or any other crypto within a year. 0 - 20% for holding crypto longer than 1 year.

No centralized crypto platform that can offer bitcoin and other crypto services to United States without having license given by them. And before the license, the organization has no option than to establish itself in United States and employ United States people along. Also the organization has to fully comply with regulations and pay taxes.

Nigeria regulators just need something to be done, especially about making those exchanges to register in Nigeria and be taxed.

[Coyster]

Our problem for this country just circle round the former CBN governor, dat guy was a cancer in our economy.

Godwin Emefiele suppose be one of the worst CBN governors wey we don get for our history, the guy no just try at all, any policy wey him bring na regressive one, e no get any policy wey CBN make under Governor Emefiele wey dey progressive, the guy mess our economy up no be small, you no see say Nigerians dey happy as DSS carry the man, the man matter tire everybody.

Nigeria regulators just need something to be done, especially about making those exchanges to register in Nigeria and be taxed.

Dem no really understand wetin dem dey do and they no wan seek expert advice, wetin i find out be say our regulators no really understand crypto and the benefit wey the country fit gain from am.

[Agbe]

Our problem for this country just circle round the former CBN governor, dat guy was a cancer in our economy.

Godwin Emefiele suppose be one of the worst CBN governors wey we don get for our history, the guy no just try at all, any policy wey him bring na regressive one, e no get any policy wey CBN make under Governor Emefiele wey dey progressive, the guy mess our economy up no be small, you no see say Nigerians dey happy as DSS carry the man, the man matter tire everybody.

Nigeria regulators just need something to be done, especially about making those exchanges to register in Nigeria and be taxed.

Dem no really understand wetin dem dey do and they no wan seek expert advice, wetin i find out be say our regulators no really understand crypto and the benefit wey the country fit gain from am.

Godwin Emefiele nai kill Nigeria economy to this level. Me I never see in any government say to change money sef dey cause hardship for citizens to suffer. Di guy do dat thing deliberately, and now Nigeria economy e no get head again, everything just Zec Zac. Di guy been dey Managing Director for Zenith Bank before oo. But na so im been dey managed Zenith Bank? Di crucification DSS dey give am as for me e no reach. I been hear say im been dey support a militia group and im come dey give am money. Make we dey see how dem go do di matter.

[Sim_card]

I wouldn't blame Nigeria government who haven't adopted and regulate cryptocurrency yet,instead I will put the blame on Emefiele our former CBN governor. I could remember when cryptocurrency hit Naija,so many people welcome and embrace am. People dey happy about the new development but Emefiele with him greedy and self centred plans come up on air because he get one nonsense power come ban crypto. This na where everything about government looking into cryptocurrency die. If government no legalize am how them won take regulate am. I just believe say make Nigeria government copy from Namibia and US on crypto matters so that them go fit reason the matter.

[uchegod-21]

Well I see Nigeria government as very weak in Cryptocurrency matters dem no no the important of di crypto things in the country. Nigeria would have been the first country in Africa to adopt, accept and regulate cryptocurrency but they are Sceptical about the technology. The ministry of technology and the ministry finance would have work Hand in hand to achieve their new development in the world. But the ministry of technology is ill staff so they don't even understand the stuff. Nigeria is the Cryptocurrency giant in Africa yet Namibia has done their regulation and South Africa is doing their at the end of the year. These are good examples.

Nigerian government corrupt and lacks digitalisation, especially the government wey just pass. Dem no get any 21st century agenda for the country. Rather they are always threatened by anything that want to compete with NAIRA.
They do not want anything that will happen to their dear naira. If they lack money, they will find it difficult to mint cryptocurrency but it will not be difficult for them to print more naira into their pocket.

This is the reason they became blind to the opportunities cryptocurrency brought to the table. Upon say crypto transaction dey illegal for the country, adoption still high. Imagine say everything dey legit and regulated. Africa for troop full Nigeria for cryptocurrency sake.

[Kelward]

We have people of wisdom in Nigeria, but why the process to do something correctly is hard in the country. Nigeria need to be fast on regulating cryptocurrencies. The suspended CBN president failed to see how Nigeria government will earn from regulating cryptocurrencies, how cryptocurrencies will increase Nigeria economic growth and development and how it will increase employment. Even without regulation, employment increased and many Nigerians depends on crypto job as of today.

Our problem for this country just circle round the former CBN governor, dat guy was a cancer in our economy. Nothing wey him do wey favor the economy of the country. Na only to dey put laws wey go take us backwards na wetin sabi. What's the need of taxing crypto when it isn't regulated in the county. Na only money mata wey we dey rush sign, we no go do the one wey go make the citizens survive and encourage more business and people to enter the cryptocurency market. E dey do me like say the government rush passed that taxation bills so dem fit dey suck all this crypto companies wey dey country dry.

Dem no go create a conducive environment for business to prosper with regulations yet dem wan dey tax dem. The taxation no be bad thing oh like e good say government dey take tax as na very good way for government to dey gather money way dem go use package the country but what about the regulations of the industry. To do business for this country na big wahala. As of now the taxation wasn't necessary or abi US dun passed their own taxation bill because this country sabi follow follow (maybe na why dem hurry go pass the bill). Anyway sha I just hope say as the taxation bill dey take effect e go make governments to begin reason regulating the industry.

I totally agree say di tax move de premature at this time, especially as dem never regulate cryptocurrency matter for inside Nigeria. Our government suppose to de put first things first, instead of putting di cart before di horse. Otherwise how we want to take make significant progress and compete with countries wey de proactive and de implement laws at di right time wey go de favourable to dem citizens.

The former CBN Governor no try for im tenure, but if our government de serious to right di wrongs of di bad precedent  wey di former governor set for crypto matter, dem fit to do am, no be rocket science. But I just de see di lack of willingness to do di needful, make bitcoin Sidon for im rightful place in Nigeria, as a world class decentralized digital currency, wey our people go trust say e de genuine and eventually everybody go adopt am just like fiat.