The post Nigeria Set to Introduce Crypto Tax Law by September appeared on BitcoinEthereumNews.com.

Nigeria’s FIRS plans to introduce a crypto tax law by September to address regulatory gaps. The changes aim to modernize Nigeria’s revenue structure and regulate crypto to avoid financial harm. The Federal Inland Revenue Service (FIRS) plans to draft a new law to regulate and tax the cryptocurrency industry, according to FIRS Executive Chairman Zacch Adedeji. Adedeji disclosed the concept at a stakeholder meeting with the National Assembly’s Senate and House Finance Committees. The proposed measure attempts to reform Nigeria’s revenue administration by modernizing antiquated tax legislation such as the Stamp Duty Act of 1939. During a stakeholder engagement with the Senate and House Finance Committees, Adedeji highlighted the need for these measures. “We need a law to regulate cryptocurrencies to ensure they don’t negatively impact Nigeria’s economic development,” he told reporters. This demand for regulation comes as Nigeria is dealing with a booming crypto economy worth $400 million, involving almost 33% of the population. New Crypto Tax Law to Address Regulatory Gaps The proposed modifications seek to update the country’s tax structure, including revising outdated regulations. The FIRS is also responding to recent developments, such as the installation of a 7.5% VAT on cryptocurrency transactions and the easing of the Central Bank’s prohibition on crypto bank accounts. Senator Muhammed Musa of the Senate Finance Committee pointed out the significance of changing tax legislation to keep up with technology changes and increase revenue collection. The new legislation would make necessary changes and create a regulatory environment that will benefit Nigeria’s developing crypto industry. The proposed regulation follows amid increasing scrutiny of cryptocurrency platforms in Nigeria, including legal action against Binance, and evaluates to stabilize the naira. As Nigeria pursues this legislative strategy, the global community will be tuned in closely to observe how the government balances innovation with effective monitoring…

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Filed under: News - @ August 20, 2024 10:22 pm