Nigeria Plans to Tax Crypto Transactions Under New Rules

• Nigeria is reviewing digital asset regulations to impose taxes on cryptocurrency transactions, aiming to integrate them into the formal tax system.
• Binance faces legal challenges in Nigeria, including allegations of money laundering and a $10 billion lawsuit for facilitating untraceable fund outflows.

The Nigerian government is reworking its digital asset legislation, with intentions to tax crypto transactions, according to Bloomberg. The action coincides with conflicts between the government and international cryptocurrency trading platforms, particularly Binance, under fire for grave accusations.

Conversely, the increase in cybercrime cases involving digital assets has made the nation more forceful in regulating the crypto sector.

From Prohibition to Regulation: Nigeria’s New Crypto Approach

The Nigerian government has shown a change of perspective on the crypto sector in lately. First prohibiting digital asset transfers by financial institutions, the prohibition was later relaxed. Still, this time the strategy is different. Nigeria seeks to utilize taxes as a regulatory tool and new source of income rather than outlawing.

Tax rules being developed by authorities will be applied to crypto transactions carried out via regulated exchanges. This move is supposed to bring the industry into the official financial system and stop untraceable movement of money. The government sees great potential to raise state income as more Nigerians choose digital assets as an alternative investment.

Still, the policy begs problems as well. Is Nigeria merely exploiting crypto as a new tax trap, or does it actually wish to build a safer and more transparent ecosystem? Taxing digital transactions might, after all, directly affect trading volumes and users possible gains.

Binance Under Pressure: Allegations of Money Laundering and Bribery

Binance is once more under great strain as the government develops its new tax plan. Recently accused of paying a $5 million bribe to the Nigerian government to release its senior executive, Tigran Gambaryan, the biggest cryptocurrency trading platform worldwide was under fire.

The accusations include a continuous trial in which Binance is accused of money laundering and running without a legal license in the nation.

Actually, the conflict between Nigeria and Binance has existed for a considerable while. CNF reported in March 2024 that Nigeria was suing Binance for $10 billion, claiming that the business benefited from illicit activity and helped the value of the naira to drop.

The central bank also charged Binance with enabling an untraceable $26 billion outflow, therefore compromising the economic stability of the nation.

This case reveals how strict the Nigerian government is becoming in managing the cryptocurrency industry. Should the claims against Binance prove valid, this might set a standard for other nations wishing to regulate digital asset exchange operations.

Rising Crypto Scams Push Nigeria to Tighten Regulation

This more regulation is inseparable with the rising frequency of occurrences of digital asset-based fraud. The Economic and Financial Crimes Commission (EFCC) of Nigeria detained 792 individuals engaged in a crypto romance and investment scam scheme in December 2024.

Of that count, forty others came from the Philippines and 148 were Chinese nationals. Operating from a contact center in Lagos, they misled victims from different nations with claims of fictitious crypto investments.