By Mark Hunter
7 hours agoFri Jul 05 2024 08:10:06
Reading Time: 2 minutes
- KuCoin Africa has announced a 7.5% VAT on each transaction for Nigerian users following regulatory changes
- The company has started collecting VAT from transaction fees for users with KYC registered in Nigeria
- The additional fees have come amid Nigeria’s efforts to regulate the cryptocurrency sector
KuCoin Africa has announced that Nigerian users will face a 7.5% tax on each transaction following regulatory changes. Starting Monday, the company will begin collecting a Value-added Tax (VAT) from the transaction fees in each trade for users whose KYC information is registered in Nigeria. The additional fees come as the country looks to regulate the sector, with the news coming during the trial of Binance executive Tigran Gambaryan on charges his supporters say are completely unwarranted.
7.5% of Transaction Fee Added
KuCoin Africa emailed its impacted users and issued an X post which explained the new tax:
✅KuCoin introduces 7.5% VAT on trading fees for Nigeria Users
We are writing to inform you of an important regulatory update that impacts our users from Nigeria.
Starting from July 8th, 2024, we will begin collecting a Value-Added Tax (“VAT”) at a rate of 7.5% on… pic.twitter.com/Y6elL3RjFi
— KuCoin Africa (@KuCoinAfrica) July 3, 2024
KuCoin gave the example that, for a transaction that carried a 1 USDT transaction fee, the total fee will be $1.075, with the 7.5% coming out of the transaction fee rather than the value of the transaction.
Authorities have explained that the tax is an effort to comply with Nigeria’s updated VAT Act, which requires VAT on all goods and services supplied in the country, barring a few exceptions. Other exchanges are expected to follow suit if they want to continue operating in the region.
Nigeria’s Rocky Crypto Relationship
News of the additional tax comes as Nigeria is already under the microscope for its treatment of Binance’s compliance chief Tigran Gambaryan, who is on trial over money laundering charges connected to the exchange.
In January 2022, Binance abruptly froze dozens of user accounts following KYC and anti-money laundering measures, which seems to have been the starting point for the country’s rocky relationship with the crypto sector.
