A cryptocurrency exchange, KuCoin, says it will commence collection of a 7.5% Value-Added Tax (VAT) on transaction fees for users in Nigeria.
In a statement on July 3, the cryptocurrency platform said the deduction of the VAT would be effective from July 8, adding that a regulatory update in Nigeria led to its decision to introduce the VAT.
According to KuCoin, for every trade, the 7.5% VAT will be applied to the transaction fee — not the total transaction amount.
In the statement, the company said, “We are writing to inform you of an important regulatory update that impacts our users from Nigeria”.
“Please note that the VAT will be applied to the transaction fees in each trade, not the transaction amount, and covers all transaction types on KuCoin platform,” the crypto exchange said.
According to KuCoin, if a user buys $1,000 worth of bitcoin with a 0.1 percent fee rate, the transaction fee would be $1.
Recall that in May, the Securities and Exchange Commission (SEC) announced plans to delist naira from all peer-to-peer (P2P) platforms.
SEC said the decision was taken to avoid the level of “manipulation” of the cryptocurrency space.
