The Securities and Exchange Commission (SEC) in Nigeria is preparing to tax cryptocurrency transactions in order to increase government revenue. A bill outlining the tax framework is currently under review and is expected to pass this quarter. The SEC plans to include eligible crypto transactions on regulated exchanges into the formal tax system, highlighting the potential for a significant amount of tax revenue. The move comes as Nigeria faces high inflation and a weakened currency, leading residents to turn to cryptocurrencies as a hedge. Additionally, the SEC intends to issue more licenses for centralized crypto exchanges, believing they offer better monitoring capabilities and investor protections compared to decentralized alternatives. This development follows increased crypto adoption in Nigeria and international scrutiny of the country's approach to regulating the sector. The tax revenue from cryptocurrency transactions is seen as a potential source of additional revenue to meet the targets of Nigeria's 2025 budget.



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