Regulation
Crypto Taxation Takes Effect in Nigeria: New Regulations Explained
In an effort to intensify regulations over the digital asset market, the Nigerian government is introducing crypto taxation. Nigeria’s Securities and Exchange Commission (SEC) is spearheading a major regulatory reform aimed at incorporating cryptocurrency transactions into the country’s tax framework.
Notably, Nigeria plans to impose taxes on cryptocurrency transactions as a strategy to increase national revenue. Thus, by strengthening oversight of the crypto market, the country aims to generate additional revenue streams.
Nigeria Unveils Crypto Taxation: Details Undisclosed
According to a Bloomberg report, Nigeria is planning to impose tax on crypto transactions in a bid to boost national revenue. The Securities and Exchange Commission (SEC) is reportedly developing a comprehensive regulatory framework to ensure “eligible [crypto] transactions on regulated exchanges are brought into the formal tax net.”
Nigeria has proposed a bill regarding crypto taxation which is currently under legislative review. The proposed bill is expected to be passed in the first quarter of 2025. Though the SEC has highlighted the significance of crypto taxation, they haven’t unveiled further details.
SEC Prioritizes Crypto Taxation and Licensing
Initially, Nigeria took an oppressive stance on the crypto market, restricting financial institutions from offering services to crypto firms. Citing concerns over increasing threats, the Central Bank of Nigeria imposed ban on crypto banking and other related activities. However, the government lifted the ban later in December 2023.
Currently, the government is fostering the Nigerian crypto market’s growth, recognizing its potential. The country’s plans for crypto taxation is a significant step towards regulating the digital asset space. As Nigeria’s crypto adoption flourishes despite regulatory constraints, the government is focusing on preserving its competitive edge while ensuring a secure environment for investors.
In a recent development, Nigeria’s SEC established a licensing regime necessitating crypto startups to obtain virtual asset service provider (VASP) licenses to operate in the country. The SEC stated, “We anticipate gradual traction toward centralized exchanges because they will provide greater protections and comfort for investors.”
Meanwhile, the US SEC is exhibiting a more advanced approach to the crypto industry. This is evidenced by the regulator’s recent acknowledgment of altcoin exchange-traded funds(ETFs).
US Crypto Regulations: A Global Trendsetter
Nigeria’s crypto taxation and regulation follow the United States’ growing emphasis on crypto oversight. Under President Donald Trump, the US SEC is implementing crypto-friendly regulations, fostering industry expansion. Commissioner Hester Peirce recently asserted that the agency is considering overhauling regulations to move away from the former enforcement-focused approach.
Recently, prominent figures including Eric Trump advocated for zero capital gains tax for US-based crypto projects. As Donald Trump sees cryptocurrencies as a national priority, the community anticipates the government to adopt a zero tax policy for crypto. However, experts believe such a move is highly unlikely as concerns surrounding the tax revenue system remain a major obstacle.
The crypto community is eagerly awaiting the US government’s stance on crypto taxation. Meanwhile, the same uncertainty surrounds Nigeria’s crypto taxation plans. As Nigeria’s crypto taxation details are still under wraps, it’s unclear whether the country will mirror the US’s approach once it’s revealed.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Coinbase says the SEC has agreed to dismiss its lawsuit against the US-based crypto exchange.
- The SEC sued Coinbase in 2023 but with Gary Gensler’s exit, the regulator is eyeing better regulatory approach.
US-based crypto exchange Coinbase is set for a landmark development after the Securities and Exchange Commission reportedly agreed to dismiss its own lawsuit against the exchange.
Coinbase announced the huge news in a blog post on Friday, Feb. 21. Coinbase CEO Brian Armstrong also shared the development in an interview with CNBC’s Squawk Box.
“SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval – righting a major wrong,” Coinbase chief legal officer Paul Grewal wrote.
Coinbase CEO Brian Armstrong also shared the news via X.
Great news!
After years of litigation, millions of your taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase. Once approved by the Commission (which we’re told to expect next week)… pic.twitter.com/IlnoBs7N6n
— Brian Armstrong (@brian_armstrong) February 21, 2025
SEC vs. Coinbase ending
According to the exchange, the regulator’s decision to withdraw the case follows a settlement that does not involve any financial penalty against Coinbase. The next move is for the SEC commissioners to ratify the agreement and end a major legal hurdle that set the US crypto market back.
“While dismissal will be a major win for the rule of law – and a clear vindication of our position – most of all it will be a win for the entire industry and the 52 million Americans who have owned a digital asset,” Grewal added.
The SEC filed its lawsuit against Coinbase in 2023, accusing the exchange of operating an unregistered securities exchange. The lawsuit also included allegations of offering unregistered securities.
Coinbase contested the charges and sought a dismissal, with industry players criticizing then SEC Chair Gary Gensler of overreach amid regulation by enforcement approach.Notably, the SEC had also sued Binance, the world’s largest crypto exchange by trading volume. Other exchanges to come into the “rogue” agency’s cross-hairs is Kraken.
However, things at the securities watchdog have taken a crypto-friendly turn since Donald Trump’s election and the exit of Gensler and other Commissioners.
Acting chair Mark Uyeda has formed a crypto task force and renamed an enforcement unit amid the quest to balance compliance and the need to protect investors.
Coinbase has revealed that the US SEC has agreed to drop the long-running legal battle against the top crypto exchange. The agreement to drop the Coinbase lawsuit represents a massive development in the Commission’s move to create a regulatory-friendly environment for the crypto industry.
US SEC To Drop Coinbase Lawsuit
In a press release, Coinbase revealed that the US SEC staff has agreed in principle to dismiss its “unlawful enforcement” case against the crypto exchange, subject to Commissioner approval. The top crypto exchange highlighted how this agreement to drop the Coinbase lawsuit rights a “major wrong.”
Coinbase noted that it has always maintained that it was right on the facts and the law and that today’s announcement confirms that the US SEC should have never filed this case in the first place.
Coinbase’s Chief Legal Officer Paul Grewal said this is a victory not just for the exchange but for customers, the United States, and individual freedom. The Commission, under former SEC Chair Gary Gensler, had sued the exchange in 2023, accusing the firm of offering unregistered securities on its trading platform.
Meanwhile, to ensure that “a rogue regulator cannot weaponize the lack of clarity again,” Coinbase stated that the US Congress must pass legislation that provides the long-term certainty needed for the country to lead in the crypto industry. The exchange added that clarity will bring new inflows of capital into the US, update the country’s financial system so consumers can pay lower fees, and help create economic freedom for all.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- The SEC has renamed its Division of Enforcement’s Crypto Assets and Cyber Unit (CACU) to the Cyber and Emerging Technologies Unit (CETU).
- CETU’s focus will be, among other things, to combat crypto fraud and cybercrime.
The US Securities and Exchange Commission has unveiled a new Division of Enforcement unit that will focus on combating crypto-related fraud and cybercrime.
SEC announced the new unit’s formation on Feb. 20.
In a press release, the SEC said it had created the Cyber and Emerging Technologies Unit (CETU). Its task will be to fight cyber-related crimes within the burgeoning emerging technologies space.
SEC’s new unit to complement crypto task force
CETU replaces the SEC’s Crypto Assets and Cyber Unit (CACU). Its core work will be to handle compliance with a view to protecting retail investors.
Laura D’Allaird will lead the CETU team of about 30 fraud specialists and attorneys, the regulator announced. The press release also noted these specialists and attorneys will come from across several SEC offices.
SEC’s acting chair Mark T. Uyeda said the unit is set to complement the effort of the agency’s recently launched Crypto Task Force. Announced in January 2015, the task force is led by Commissioner Hester Peirce.
Uyeda noted that CETU’s work will “allow the SEC to deploy enforcement resources judiciously.”
He added:
“The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”
Priority areas for the new unit will include fraud committed via crypto, blockchain, AI and Machine Learning, social media, the dark web, or fake websites. Hackers will also be on the radar of the new unit, as will be incidents involving takeover of retail brokerage accounts.
The SEC is also empowering the enforcement unit to look into non-compliance with cybersecurity regulations.
What It Means for the XRP Lawsuit
LINK Price Action Turns Cautious As Bearish Pennant Shapes Up
Ethereum Holds Key Support – Analyst Doubts Bears Can Defend $4K Anymore
Bybit Reportedly Hacked for Over $1.5 Billion
Sui Price Sees Explosive Growth Amid Increasing Daily Active Addresses: Will It Hit $8?
Shiba Inu’s December 2024 Downtrend Could End As Inflows Rise
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
-
Regulation4 hours agoCoinbase scores major win as SEC set to drop lawsuit
-
Regulation24 hours agoSEC launches new unit to combat crypto fraud and cybercrime
-
Market16 hours agoSUI Targets Bullish Breakout with Golden Cross Potential
-
Market15 hours agoBitcoin Price Recovers Strongly—Is a New Rally Beginning?
-
Altcoin15 hours agoXRP Price Eyes New ATH As Grayscale’s XRP ETF Filing Enters US SEC Review
-
Market14 hours agoTrust Wallet Discusses the Challenges and Future of Crypto Wallets
-
Market19 hours agoKAITO Price Attempts Recovery as Top Holders Exit Post-Airdrop
-
Market13 hours agoXRP Price Upside Move Slows—What’s Stopping the Breakout?
✓ Share: