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.
Cryptocurrency investors in Japan are bracing for impact following a plan to reclassify digital assets as financial products. While the plan has elicited excitement from cryptocurrency enthusiasts in the Far East, the ambitious plan will have to scale several legislative hurdles.
Japan Targets Reclassification Of Cryptocurrencies As Financial Products
According to a report by Nikkei, Japan’s Financial Services Agency (FSA) is inching toward classifying cryptocurrencies as financial products. Per the report, the FSA intends to achieve the reclassification via an amendment to the Financial Instruments and Exchange Act.
Currently, digital assets in Japan are considered crypto assets conferred with property rights and seen as payment means. Under the FSA’s plans, cryptocurrencies in Japan will be treated as financial products in the same manner as traditional financial products.
The FSA says it will adopt a slow and steady approach toward the reclassification, carrying out “a private expert study group” to test the waters. If everything goes according to plan, the FSA will submit the amended bill to Parliament in early 2026.
The classification of cryptocurrencies as financial products will have far-reaching consequences for the local ecosystem. Experts say treating cryptocurrencies as financial products will bring Japan closer to a crypto ETF launch amid a changing regulatory landscape.
Furthermore, the move may lower current cryptocurrency taxation for local investors since existing capital market rules will apply to the asset class.
A Fresh Bill For Crypto Insider Trading Is Underway
Apart from the reclassification, the FSA disclosed plans for new legislation against insider trading. The move flows treating cryptocurrencies as financial products and will strengthen existing investor protection rules.
“It is a direction to establish a new insider trading regulation that prohibits trading based on unpublished internal information,” said the FSA. “We will develop laws to prevent unfair transactions.”
However, Japan’s cryptocurrency scene is heating up to a boil, driven by local and international players. Last week, stablecoin issuer Circle secured approval from the FSA for USDC with top exchanges set to list the stablecoin.
Japan’s Metaplanet has tapped Eric Trump to join its Strategic Board of Advisors as it continues to load up Bitcoin.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
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.
In what is being dubbed a major development in the crypto regulation space, the Governor of the US state of Kentucky, Andy Beshear, has signed the ‘Bitcoin Rights’ bill into law. The law promises to safeguard protections for Bitcoin (BTC) users.
Bitcoin Rights Bill Comes Into Effect
Crypto regulations continue to evolve under pro-crypto US President Donald Trump’s administration. In the latest development, Kentucky has become the newest state to enshrine protections for digital asset users.
In an X post published on March 24, crypto advocacy group Satoshi Action Fund announced that Governor Beshear had signed the much-anticipated Bitcoin Rights bill into law. The post stated:
The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.
The bill was first introduced to the Kentucky House by Rep. Adam Bowling on February 19. According to the bill’s description, it seeks to safeguard users’ rights to use digital assets and self-custody wallets. Additionally, it aims to prohibit local zoning changes that discriminate against crypto mining operations.
The legislation outlines guidelines for running a digital asset node and excludes digital asset mining from money transmitter license requirements. It also clarifies that crypto mining or staking is not considered an offer or sale of securities.
On February 28, the bill passed Kentucky’s House of Representatives with a unanimous vote of all 91 representatives in favor. It later passed the Kentucky Senate on March 13, receiving backing from all 37 senators.
Kentucky’s proactive stance toward cryptocurrencies isn’t new. Earlier this year, the state became the 16th US state to introduce legislation seeking to create a Bitcoin strategic reserve.
Meanwhile, neighboring state Arizona is also joining the crypto movement. A recent X post by Bitcoin Laws revealed that Arizona’s House Rules Committee has passed two Bitcoin reserve bills — SB1373 and SB1025. These bills will now head to a full floor vote.
Renewed Optimism Under Trump Administration
Following Trump’s victory in the November presidential election, cryptocurrency regulations in the US are evolving rapidly, with many states introducing legislation aimed at strengthening their digital asset ecosystems and attracting crypto businesses.
Positive changes in crypto regulations are encouraging industry businesses to expand. For instance, leading crypto trading platform Coinbase recently announced plans to hire 1,000 employees in the US.
The Trump administration has also witnessed several lawsuits being dropped against major crypto entities, including Kraken, Coinbase, Gemini, and others. At press time, Bitcoin trades at $87,399, down 0.2% in the past 24 hours.
Featured Image from Unsplash.com, chart from TradingView.com
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Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.
US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges
The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.
Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.
Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
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.
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