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Experts Warn Lack of Clarity on Cryptocurrency in Nigeria Could Hinder Tax Collection

June 26 (Cointime) - Experts have cautioned that the lack of clarity surrounding the status of cryptocurrency in Nigeria may hinder the collection of newly-introduced taxes. The 2023 Finance Act has implemented a 10% capital gains tax on profits earned from the sale of digital assets from May 1, 2023. However, since cryptocurrency transactions cannot be monitored like bank transactions, tax authorities will have to rely on traders to self-report their profits.

The uncertain status of cryptocurrency in Nigeria, including the central bank's ban on banks dealing in crypto-assets, may also reduce interest in digital assets. Despite this, Nigeria has launched a national policy to promote the adoption of blockchain technology, which acknowledges the legitimacy of cryptocurrencies and cryptocurrency exchanges.

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