• Starting Monday, July 8th, Kucoin will charge a 7.5% tax on all transactions made by users registered in Nigeria.
• This decision comes from a regulatory update from the Nigerian SEC.

Kucoin exchange took to Twitter (X) to announce that starting Monday, July 8th, Nigerian users will be charged a 7.5% value-added tax on all transactions. This move, spurred by the Nigerian SEC’s regulatory actions, comes a month after the regulator asked all crypto exchanges and businesses to re-register or risk enforcement action.

This levy may be a sign that the Nigerian SEC is at the early stages of recognising cryptocurrencies, three years after the country’s Central Bank ordered banks to stop transacting with cryptos either for themselves or corporate entities.

The Nigerian government has tried to impose a 10% levy on crypto transactions through the 2023 Finance Act but was unable to enforce it due largely to regulatory opacity.

While the SEC Chairman Emomotimi Agama has not commented on the new tax, the regulator admits that this new rule is part of its plan to regulate crypto.

In a court hearing in Abuja, Nigerian authorities intensified their legal battle against the cryptocurrency exchange Binance. Central Bank officials testified that Binance operated without a license, which aligns with allegations of facilitating illegal transactions on its platform.

Binance Accused of Unlicensed Operations in Nigeria

Olubukola Akinwunmi, a key figure from Nigeria’s central bank, claimed Binance had no authority to enable cryptocurrency trades in Nigeria. The lack of a formal license emerged as a significant point during the court proceedings. The Economic and Financial Crimes Commission leveraged this point, underscoring potential legal violations by Binance.

Akinwunmi explained that Binance’s services equated to a money brokerage requiring specific regulatory approval. He highlighted the peer-to-peer platform’s ability to exchange naira for other fiat currencies. Such operations typically necessitate central bank authorization as a recognized exchange or a bureau de change.

Moreover, the central bank official criticized Binance for allowing pseudonymous trading on its platform. Despite Binance’s stringent identity verification measures for Nigerian users, these practices have been questioned. Binance mandates local banking details and government-issued IDs for Nigerian traders.

Also Read: Venezuela’s Digital Asset Remittances Hit Yearly $460 Million

Gambaryan’s Health Ignored by Nigerian Officials

Tigran Gambaryan, Binance’s US-based compliance executive, faces charges alongside the firm. Since his arrest in February, Gambaryan has been held at Kuje Prison and has encountered severe health issues, including malaria and pneumonia. His condition worsened, leading to a collapse at the trial’s outset in May.

Despite a judicial order for medical attention, prison officials delayed compliance, only conducting tests weeks later. The results have not been disclosed to Gambaryan’s defense team. This neglect sparked criticism from Justice Emeka Nwite, who admonished the prosecution and prison authorities for disregarding his directives.

Justice Nwite warned of consequences if the medical reports are not presented by the next court date, set for July 16. Meanwhile, prison officials have dismissed allegations of mistreatment, asserting that Gambaryan is not in a severe health condition. The ongoing trial has drawn attention to the broader implications of cryptocurrency regulation in Nigeria.

Following these legal challenges, Binance ceased its operations for Nigerian users, affecting an estimated 13 million customers. The sudden withdrawal has left many seeking alternative trading platforms.

Also Read: Multicoin Capital To Fund Crypto-Friendly US Candidates In Solana

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

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.