Cryptocurrency
KuCoin Announces VAT on Transaction Fees for Nigerian Users
Thursday. July 4 at 5:30 PM
1 min. readKuCoin, a prominent global cryptocurrency exchange, will implement a 7.5% value-added tax (VAT) on transaction fees for Nigerian users with registered Know Your Customer (KYC) information starting July 8. This new policy will slightly raise trading fees for Nigerian users on KuCoin, applying only to transaction fees and covering all transaction types. Despite being banned by the Nigerian government, KuCoin's VAT announcement has sparked confusion among Nigerian crypto stakeholders, including concerns about fraud and transparency. Questions have been raised about user verification, trade activity reporting, VAT remittance, and the impact of CBN restrictions on converting crypto to fiat. Speculation surrounds the application of VAT to all crypto transactions and potential future regulations. While some view the VAT levy positively as a recognition of digital assets, others criticize the government for hindering the growth of Nigeria's crypto industry.