The bill’s goals include increasing government openness, raising money, and officially recognising cryptocurrency as property.
Several tax changes designed to bring the country’s tax system up to date are included in the legislation. The legislation included a clause that imposed a 10% tax on selling digital assets like cryptocurrency.
The overarching goal of the proposed law is to increase government openness, increase tax collection, and stimulate the economy. Since digital assets are growing in importance, the legislation proposes taxing them.
This is an effort by the Nigerian government to level the playing field so that those with digital assets may pay their fair share of taxes for the nation’s benefit. The increasing importance and economic potential of digital assets have not gone unnoticed in Nigeria, and this move shows that the country is adapting its tax structure accordingly. To find out how the local crypto business and community are reacting to the new regulations, Cointelegraph reached out to relevant players in the space.
According to Cointelegraph, Barnette Akomolafe, CEO of the cryptocurrency payments service M7pay, the additional taxes may be considered a step towards recognising cryptocurrencies as genuine assets and incorporating them into the current financial and legal system.
Another unnamed local crypto expert said that the peculiarities of digital assets, such as valuation, transaction monitoring, and cross-border complexity, might make taxing them difficult.
Numerous governments ask cryptocurrency exchanges to provide user data to monitor customers’ investment returns. To identify people or businesses for tax reasons, authorities may obtain transaction data by cooperating with exchanges. But different nations have different standards for collaboration and rules. Stricter reporting requirements for transfers of user data have been adopted in certain countries, while other jurisdictions may have limited restrictions or be in the process of establishing them.
Also Read: The Total Debt Owed By The US Will Have Exploded Above $17 Trillion
Wallets