See how Nigerians reacted as crypto firms inform customers on new transaction fees

• The Nigerian government have slammed a 7.5% value added tax on crytocurrency transactions in the country
• Cryptocurrency firms such as KuCoin have already sent out messages to their customers in Nigeria on the expected transaction fees
• Nigerian crypto traders have reacted to the decision with mixed reactions given the recent decision to banned Binance

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigerian cryptocurrency traders have expressed concern and frustration as crypto exchange, KuCoin announced decision to impose a 7.5% Value Added Tax (VAT) on transaction fees for Nigerian users starting July 8, 2024.

KuCoin notified its Nigerian user base via email citing compliance with the Federal Inland Revenue Service (FIRS) requirements.

Crypto transactions to attract 7.5% VAT Photo credit: ArtistGNDphotography
Source: Getty Images

What KuCoin said

In the message to the users, the crypto exchange said the decision to start charging VAT was reached in line with regulatory requirements”“We are writing to inform you of an important regulatory update that impacts our users from the Republic of Nigeria. Starting from July 8th, 2024, we will begin collecting a Value-Added Tax (VAT) at a rate of 7.5% on transaction fees in each trade for users whose KYC information is registered in Nigeria.“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."The new VAT fee has sparked a wave of reactions from the Nigerian crypto community, who feel that the government should not tax what they have not supported.

Legit.ng earlier reported that the federal government clamped down on crypto platforms, especially Binance, forcing them to stop NGN/USD P2P trading.

Nigerians reactions

@banjokokumo wrote:

"Will the government make a good use of the VAT."

@melexchi added:

"Because I used Nigeria as my KYC, what if I've relocated to Canada, I'll still pay 7.5% VAT because my KYC Nigerian based, @KuCoinAfrica why am I getting the feeling this is another scam tactics to steal from us?"

Crypto_Boy @Sagir7g7 added:

But crypto transaction in Nigeria is illegal.... Is Nigeria interested in collected illegal money

Difference between launch date and listing date

A Nigerian man explained the difference between the Tapswap pool launch date and the listing date.

The pool launch date is when tap tokens would be allocated to miners who played the game on Telegram.

A crypto expert who spoke to Legit.ng said Tapswap had not announced any launch date as it explained to miners during its Ask Me Anything.

Source: Legit.ng