#cryptonews
Nigeria is planning to revise its regulations to include crypto trading and digital transactions taxation in its regulatory framework, which would enhance government revenue.
According to a Bloomberg report, the Nigeria Securities and Exchange Commission (SEC) has announced plans to implement new rules to ensure that eligible transactions on regulated exchanges are taxed appropriately.
The SEC also intends to broaden crypto licensing, enabling more centralized exchanges to function, thus enhancing government oversight and taxation.
A bill detailing the taxation framework is currently under consideration by lawmakers and is anticipated to be adopted within the current quarter.
This legislative move aligns with broader fiscal policies under Tinubu’s administration, which has prioritized tax administration reforms to increase government revenue. Nigeria’s parliament recently approved a record 54.99 trillion naira ($36.4 billion) spending plan for 2025, further showing the government’s need for increased revenue streams.
The SEC’s proposed regulations will require taxing all transactions on regulated exchanges.
The regulator believes centralized exchanges will provide better investor protection, enhanced transparency, and a more structured taxation environment.
In addition to taxation measures, the SEC is working to expand the licensing framework for cryptocurrency exchanges, encouraging a shift toward centralized trading platforms.
However, the SEC anticipates a gradual migration to formal exchanges, where transaction monitoring and compliance with tax regulations will be easier to enforce. The licensing initiative aims to regulate more exchanges and ensure that transactions occur within a taxable framework.
Currently, many Nigerians rely on peer-to-peer (P2P) crypto trading due to restrictions on banks facilitating crypto transactions.
The SEC introduced these initiatives to integrate firms operating before its virtual asset regulations took effect in May 2022. The aim is to foster innovation while ensuring compliance.
At the same time, Nigeria’s SEC proposed stricter penalties for cryptocurrency-related fraud, including fines of up to $12,000 or a 10-year prison sentence.
In August last year, Nigeria’s SEC granted provisional approval to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, under its Accelerated Regulatory Incubation Programme (ARIP).