Kucoin exchange to start paying Value-Added Tax to Nigeria government

[Antotena]

About a month a go, I reported that Kucoin suspended P2P market in Nigeria due to the regulatory compliance and it seems there is negotiation to stay in Nigeria market. They made an announcement to start paying value added tax to the Nigerian government.

The value-added tax (7% tax) will be deducted from the trading fee Kucoin will be charging every trade you make on the exchange, perhaps this is going to make the government allow p2p platforms to strive once again since the tax is coming from the fee already paid to the exchange and not the traders. I hope this ease the beef between the government and the crypto market.

[Charles-Tim]

I think Kucoin made this move because those regulators have always been acting like they do not know what they are doing. I expected all well known exchanges to have been driven towards this path in a way Nigerian government can generate tax from cryptocurrencies. I really like to see this happening. But let us hope corruption will not prevail in a way that they will generate more taxes but the economy becoming poorer.

[Amphenomenon]

I think Kucoin made this move because those regulators have always been acting like they do not know what they are doing. I expected all well known exchanges to have been driven towards this path in a way Nigerian government can generate tax from cryptocurrencies. I really like to see this happening. But let us hope corruption will not prevail in a way that they will generate more taxes but the economy becoming poorer.

This is a good initiative, another thing I`m concern is from the fact that these regulators might in the want more percentage from the task before they agree to it since it obvious they`re just greedy especially how they wanted $10 billion from Binance. Though this will make our dense regulators see that these exchanges are ready to pay taxes.

[promise444c5]

I think Kucoin made this move because those regulators have always been acting like they do not know what they are doing. I expected all well known exchanges to have been driven towards this path in a way Nigerian government can generate tax from cryptocurrencies. I really like to see this happening. But let us hope corruption will not prevail in a way that they will generate more taxes but the economy becoming poorer.

Hopefully... because the way I see those corrupt officials is just like fraudsters not even professional because  they make it open since they are covered by  their stupid immunity. This was their major intentions right from the start they just actually looked for a perfect  timing and now that they are getting what they want  let's see their next move

[DiMarxist]

I think Kucoin made this move because those regulators have always been acting like they do not know what they are doing. I expected all well known exchanges to have been driven towards this path in a way Nigerian government can generate tax from cryptocurrencies. I really like to see this happening. But let us hope corruption will not prevail in a way that they will generate more taxes but the economy becoming poorer.

This is a good initiative, another thing I`m concern is from the fact that these regulators might in the want more percentage from the task before they agree to it since it obvious they`re just greedy especially how they wanted $10 billion from Binance. Though this will make our dense regulators see that these exchanges are ready to pay taxes.

I think it is because of the percentage they agreed to come back again. I also just received the email from my inbox but if you are making the transaction from Kucoin to another exchange and using TON network, I think think that percentage also applied for it and also it is not also apply for internal transactions but it is only when you are trading with it.
Either buying or selling. Well it is a good move and I think Binance and OKX will also do the same and come back again. This is good news but they gave to monitor their vendors so that they will not manipulate the price of dollar and instead.of keeping it in the normal price of $1 = #1479 and not to #1800 amd any vendor thT manipulate the price should be bad instantly. And I just checked the app they have not added the NGN sign back to the payment method.

[Charles-Tim]

This is a good initiative, another thing I`m concern is from the fact that these regulators might in the want more percentage from the task before they agree to it since it obvious they`re just greedy especially how they wanted $10 billion from Binance. Though this will make our dense regulators see that these exchanges are ready to pay taxes.

Do not mind those news that brought it out that government demanded for $10 billion from Binance but did not bring the second news that Onanuga clarifud what he meant. BBC interviewed Bayo Onanuga, the special adviser on information and strategy to President Bola Tinubu when he said it but he later knew what was circulating and later said BBC misinterpreted him that he meant government may fine Binance and not that government has fined Binance.

[Churchillvv]

For sure Nigeria governments are supposed to make this kind of decision but making it after a long period or shorting down for some time before they could conclude on this is my big issue.

it's an example of incompetence because they let the people suffer first before they make a decision but in other case they deliberate on such decisions without affecting the people first, then once it's concluded they put it out. anyways, at least we are only going to pay extra fees to make transactions which is better and if it happens across all exchanges (CEXs) it will bring up a competition that might lower the added tax amount.

For instance if binance as a bigger and wider exchange decides to take 6.5% of tax charge using Kucoin as example, they might want to lower their fees too for more patronage and that will be a good experience.

I'm a little bit impressed.

[Chilwell]

I think Kucoin made this move because those regulators have always been acting like they do not know what they are doing. I expected all well known exchanges to have been driven towards this path in a way Nigerian government can generate tax from cryptocurrencies. I really like to see this happening. But let us hope corruption will not prevail in a way that they will generate more taxes but the economy becoming poorer.

Hopefully... because the way I see those corrupt officials is just like fraudsters not even professional because  they make it open since they are covered by  their stupid immunity. This was their major intentions right from the start they just actually looked for a perfect  timing and now that they are getting what they want  let's see their next move

If its going to be done in the right way I will be very happy to see it happening because finally our minds will all settle down, government is very powerful and have unlimited power to do anything, I think finding a resolution on this issue is good at least all the three parties should be happy, the three parties are, government, exchange and we the citizens. When this start I will have confidence of transacting with free of mine without any fear.

My fear is that we Nigeria are very smart, this agreement shouldn't give room for money laundering especially our politicians I know must of them don't know how to use it but there are smart people among them, but what calmed my mind is that every transaction is traceable and it will easily be track down.

[letteredhub]

I think Kucoin made this move because those regulators have always been acting like they do not know what they are doing. I expected all well known exchanges to have been driven towards this path in a way Nigerian government can generate tax from cryptocurrencies. I really like to see this happening. But let us hope corruption will not prevail in a way that they will generate more taxes but the economy becoming poorer.

But if you ask me  C-T  I will say in the first place, it is not in the place of kucoin or any other exchanges to make the first move for regulation and tax, it was a thing expected of the government to do but they failed in their role anyway. Nevertheless, I commend kucoin for their professionalism in making such move with the Nigeria government in order to see to the use of Naira in their platform because with the level of crypto adoption amongst Nigerians, Nigeria is a huge market for crypto in Africa and kucoin understand what they stand to continue losing if they don't take the move themselves so as to bring back p2p for Nigerian traders in their platform which the ban on their platform has led to Nigerians looking elsewhere. I think it's a win-win situation for both parties.

[EL MOHA]

I think Kucoin made this move because those regulators have always been acting like they do not know what they are doing. I expected all well known exchanges to have been driven towards this path in a way Nigerian government can generate tax from cryptocurrencies. I really like to see this happening. But let us hope corruption will not prevail in a way that they will generate more taxes but the economy becoming poorer.

I could remember your posts that the only way out of this mess of banning exchanges from operating in the county was to tax them, now we are here, where we were supposed to be. I don’t have any issue with the amount as at now because it will only be a greedy or less concerned citizen that will complain about the percentage, but my only complaint is, before going ahead with this new development the government needs to address the legality of traders, one cannot be paying for this so called tax and still be disguising when trading. There should be a directive to banks about it been legal.

After this I think those who still have their accounts worth millions of naira frozen due to this kind of bans should open up a petition for its return. We cannot simply pay tax and then still be under severe restrictions. Overall it is a big step up if you ask me, the amount people lose on all this local exchanges is by far more than this percentage. The government should even make it incentive for the exchange to even prioritize having an head office here in Nigeria.

My fear is that we Nigeria are very smart, this agreement shouldn't give room for money laundering especially our politicians I know must of them don't know how to use it but there are smart people among them, but what calmed my mind is that every transaction is traceable and it will easily be track down.

Yes you are right about people using crypto for money laundering, but I tell you this the government were just blabbering about it the last time just because they wanted reasons to ban it. This is a KYCed platform and outrageous amount movement can easily be dictated and frozen by the exchange you know. Centralized exchanges are even the easiest way to catch money laundering in cryptocurrency, so it won’t me a major problem if you ask me.

My major concern is the hope the tax valuation or say percentage wouldn’t be increased later to an unrealistic amount because of there is anything this government knows how to do it is increasing rates

[Hatchy]

My fear is that we Nigeria are very smart, this agreement shouldn't give room for money laundering especially our politicians I know must of them don't know how to use it but there are smart people among them, but what calmed my mind is that every transaction is traceable and it will easily be track down.

That won't be an obstacle if the government want to steal good money. They have been doing it with fiat before so I don't see any thing change if they finally let cryptocurrency exchanges in the country. I think I ones asked similar questions a long time ago about Nigeria government using cryptocurrency to steal. But then you will know by now that most of these top politicians who are exposed knows more about cryptocurrency than we do. And it would not be shocking to hear that some of them have been converting cash to coins using exchanges but out there on screen, they claim to want to regulate them.

[knowngunman]

I think Kucoin made this move because those regulators have always been acting like they do not know what they are doing. I expected all well known exchanges to have been driven towards this path in a way Nigerian government can generate tax from cryptocurrencies. I really like to see this happening. But let us hope corruption will not prevail in a way that they will generate more taxes but the economy becoming poorer.

I also see this as a good development for everyone of us (the government, the exchanges and the trader). The Nigerian government is after money and in this way, they will be able to generate the money they are after. The steps they earlier took to fight crypto will never be fruitful, negotiations like this will give all parties involved a fair ground.

However, I will still advice our people to keep learning about this technology called crypto because this probably might not be favorable in the long run due to excess charges that would characterize the system. If these eventually happen, DEX will be our only option where majority of us are not familiar with. In summary, it’s a good move and we will probably expect p2p service to be restored in kucoin while expecting other exchanges to follow suit.

[Mr Reporter]

About a month a go, I reported that Kucoin suspended P2P market in Nigeria due to the regulatory compliance and it seems there is negotiation to stay in Nigeria market. They made an announcement to start paying value added tax to the Nigerian government.

The value-added tax (7% tax) will be deducted from the trading fee Kucoin will be charging every trade you make on the exchange, perhaps this is going to make the government allow p2p platforms to strive once again since the tax is coming from the fee already paid to the exchange and not the traders. I hope this ease the beef between the government and the crypto market.

Example Calculation:
Transaction: Buy 1,000 USDT worth of BTC Fee: 1 USDT (0.1% fee rate)
Tax: 0.075 USDT (7.5% of the fee)
Net Amount for Transaction: 998.925 USDT
Please note that the VAT will be applied to the transaction fees in each trade, not the transaction amount, and covers all transaction types on KuCoin platform.
Source- @crypto4bailout on Xapp.

 Just saw this on X app this is how it going to been calculated now every transaction been made (7.5% will be used for the so called tax payment)

 Lol I thought the so called government where against the crypto world and now they still want the exchange to pay them for every transaction well good luck with them.  
This Nigerian government matter tire me self ohh I just pray say this tax of a tinx no affect other exchange too.

But on a second through e be like say our government don dey put head for cryptocurrencies matter ohh this one wey them dey collect taxes, na him be say if the government start collect tax crypto don resume back to it place be that ohh.

[Samlucky O]

I think Kucoin made this move because those regulators have always been acting like they do not know what they are doing. I expected all well known exchanges to have been driven towards this path in a way Nigerian government can generate tax from cryptocurrencies. I really like to see this happening. But let us hope corruption will not prevail in a way that they will generate more taxes but the economy becoming poorer.

However, I will still advice our people to keep learning about this technology called crypto because this probably might not be favorable in the long run due to excess charges that would characterize the system.

I don't think so, we can not just use because of tax enforced by government on NGN Cex P2P, and generalize the whole cryptocurrency becoming not favourable. As we all know that this tax works only for Nigeria centralized P2P exchange, but may not work for everyone in this country or outside the country, because different people have there ways to trade their coin, so they can bypass this tax. And Morover I don't think Nigeria government would benefit this tax forever, this is just temporary because Dex exchange has not been discovered where people would trade there coin effectively without the use of kyc, because the kyc Cex is using is the reason behind why government is holding firmly on tax. Tax is not one of the porpos of cryptocurrency or blockchain technology but now government want to deprive us of the sovereignty and liberty of blockchain technology by making people pay tax fee per exchange. Though the percentage may be small but with time I believe government will not have that right or opportunity to tax it's citizens through NGN Cex P2P. when Dex non kyc will be out, cryptocurrency will still maintain one of its advantages of being totally dicentralize, where no entity will have the right to directly or indirectly extort money from cryptocurrency transaction. Because if this pattern of government continues, Cex may be currupt by this greedy politician and begin to extort above the initial percentage agreed.

[Princess Leah]

Lol I thought the so called government where against the crypto world and now they still want the exchange to pay them for every transaction well good luck with them.  
This Nigerian government matter tire me self ohh I just pray say this tax of a tinx no affect other exchange too.

But on a second through e be like say our government don dey put head for cryptocurrencies matter ohh this one wey them dey collect taxes, na him be say if the government start collect tax crypto don resume back to it place be that ohh.

One would be right to say the policy of this present government is concerning taxation alone, they careless about the affairs of the citizens, when they saw they were not benefiting from these exchanges they decided to shut them down to frustrate citizens who carry out transactions with them.

 However, now that most exchanges are now coming in agreement to terms that would favour them, they're now considering lifting the ban, it's not as if those money they'll realise from the tax they'll generate from Kucoin that would be indirectly paid by citizens would be used for the betterment of the nation but instead looted and shared amongst themselves as usual.

 Well, it's a good news to have those exchanges back, Kucoin was one of the top exchanges in Nigeria before the ban and I patronised their P2P services back then, I'll love to hear that exchanges like Binance and OKX get back as well.

[Jaycoinz]

About a month a go, I reported that Kucoin suspended P2P market in Nigeria due to the regulatory compliance and it seems there is negotiation to stay in Nigeria market. They made an announcement to start paying value added tax to the Nigerian government.

The value-added tax (7% tax) will be deducted from the trading fee Kucoin will be charging every trade you make on the exchange, perhaps this is going to make the government allow p2p platforms to strive once again since the tax is coming from the fee already paid to the exchange and not the traders. I hope this ease the beef between the government and the crypto market.

So in essence the original reason or battle in which they actually fought over the P2P trade being a source to increase of the naira is just a mirage because if there is possiblity that kucoin will allow P2P trade again then the Nigerian actually don't know what's their problem and I won't be surprised because even from the onset and till date that they have continually blocked P2P trade on major exchange the Nigerian naira still fail to appreciate over the dollar instead it continues it decline and showing that the step they took to approach the whole naira depreciation things is just a shift of blame to these exchanges being the cause.

[HajiBagi]

I think Kucoin made this move because those regulators have always been acting like they do not know what they are doing. I expected all well known exchanges to have been driven towards this path in a way Nigerian government can generate tax from cryptocurrencies. I really like to see this happening. But let us hope corruption will not prevail in a way that they will generate more taxes but the economy becoming poorer.

It is very good that KuCoin has decided to cooperate with the government, this is also what the Nigeria government wants, they want where they are going to be generating money from, I have said from the beginning that the reason why the government wants to stop those cryptocurrencies activities in Nigeria is that they want to start generating money from each cryptocurrency exchanges and KuCoin has decided to cooperate with them, it will be very good if the remaining exchanges also follow the same steps that KuCoin follow and negotiate with Nigeria government so that they will have their customers back.

As Nigeria will be generating tax from some exchanges, what do we think the government will be doing with the tax? From my understanding and the country that I know is Nigeria, the money will be squandered by the government, no one will ever know what the money is used for and the money is supposed to be used for a project that will progress the country and also help the people of the country but due to corruption in the country we will never hear from them when they collect the money.

[Spaceman1000$]

About a month a go, I reported that Kucoin suspended P2P market in Nigeria due to the regulatory compliance and it seems there is negotiation to stay in Nigeria market. They made an announcement to start paying value added tax to the Nigerian government.

The value-added tax (7% tax) will be deducted from the trading fee Kucoin will be charging every trade you make on the exchange, perhaps this is going to make the government allow p2p platforms to strive once again since the tax is coming from the fee already paid to the exchange and not the traders. I hope this ease the beef between the government and the crypto market.

With this kind of moves going round, it's obvious Kucoin still want to engage the Nigerian market again by lifting the suspension on P2P trade. At first it was looking like they don't care about the outcome of the P2P suspension they made on Nigeria, I think they've taken time to understudy the losses they have encountered given the fact that a lot of kucoin Nigerian users have migrated to the next exchange that will give them the best of service they want, Nigeria is big Cryptocurrency market in Africa, at least the best they can come up with is to liaise with the government of the day to find a common ground so that their business can strive.

[Obim34]

About a month a go, I reported that Kucoin suspended P2P market in Nigeria due to the regulatory compliance and it seems there is negotiation to stay in Nigeria market. They made an announcement to start paying value added tax to the Nigerian government.

The value-added tax (7% tax) will be deducted from the trading fee Kucoin will be charging every trade you make on the exchange, perhaps this is going to make the government allow p2p platforms to strive once again since the tax is coming from the fee already paid to the exchange and not the traders. I hope this ease the beef between the government and the crypto market.

So in essence the original reason or battle in which they actually fought over the P2P trade being a source to increase of the naira is just a mirage because if there is possiblity that kucoin will allow P2P trade again then the Nigerian actually don't know what's their problem and I won't be surprised because even from the onset and till date that they have continually blocked P2P trade on major exchange the Nigerian naira still fail to appreciate over the dollar instead it continues it decline and showing that the step they took to approach the whole naira depreciation things is just a shift of blame to these exchanges being the cause.

I already knew right from the start that all the so called display by the government is just to attract or I say extort some good fortunes from these exchanges, nothing more than this because I believe they can never shot down the P2P service for too long. Once the new system begins with Kucoin then definitely it will go round to as many more exchanges currently in use.

All these while nothing has changed in the economy, a dollar currently exchanged for 1,500 Naira nothing fascinating about their so called measures to keep the economy fit even with the taxes to be paid, I still don't yet except something positive to happen.

[Nheer]

If its going to be done in the right way I will be very happy to see it happening because finally our minds will all settle down, government is very powerful and have unlimited power to do anything, I think finding a resolution on this issue is good at least all the three parties should be happy, the three parties are, government, exchange and we the citizens. When this start I will have confidence of transacting with free of mine without any fear.

My fear is that we Nigeria are very smart, this agreement shouldn't give room for money laundering especially our politicians I know must of them don't know how to use it but there are smart people among them, but what calmed my mind is that every transaction is traceable and it will easily be track down.

This is what they should have done for long instead of trying to shut down cryptocurrency in the country i believe this step will lead to more great moves and probably may lead to restoring back p2p trades on those major exchanges. It good that government and the exchange have come to consensus and at least i am happy government have finally taken a step forward which could change their mind about cryptocurrency.

You have a point about the corruption and money laundering that take place in most of these exchanges but i believe there are ways the exchange will be able to identify such fraud.