Here’s some important news for all Nigerian KuCoin users. KuCoin, a well-known cryptocurrency exchange, announced that they would start collecting transaction fees from their users in Nigeria.
What does this mean for KuCoin Users?
In a statement dated July 3, KuCoin shared that this VAT deduction will begin on July 8. But don’t worry, this VAT isn’t on the total transaction amount. It’s only on the transaction fee. For example, if you buy $1,000 worth of Bitcoin with a 0.1% fee rate, your transaction fee would be $1. The 7.5% VAT would be $0.075, making your net amount $998.925.
For context, here’s KuCoin’s statement shared with its users via Email;
This isn’t entirely out of the blue though. Back in 2022, former Minister of Finance, Budget, and National Planning, Zainab Ahmed, mentioned the government’s intention to tax cryptocurrencies and other digital assets. Subsequently, the 2023 Finance Act was released, which includes a 10% tax on profits from digital assets, including cryptocurrencies. However, this specific provision is yet to kick off.
Additionally, KuCoin’s actions could be linked to the Virtual Asset Service Provider (VASP) fee increase. FG’s SEC recently released a statement in June, increasing the registration fee from 30 million naira ($20,161) to a staggering 150 million naira ($100,806). This was mandatory for all domestic and international crypto exchanges operating in Nigeria.
So, if you’re a Nigerian KuCoin user, get ready for this new VAT on your transaction fees. However, if you’re looking for a much better alternative, Jackocoins has you covered.
Enjoy fast payments, and fiat conversions of your favorite coins from BTC, BUSDT, USDT, ETH, and much more to Naira. Most importantly, all deposits and crypto transactions are FREE!
Simply sign up, get your account verified, and start trading today!
Till next time!
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