After the clampdown on cryptocurrency platforms, the Nigerian government has introduced VAT payment on all crypto transactions.

KuCoin said it would comply with the directive from the federal government.

KuCoin, one of the cryptocurrency exchange platforms that deactivated P2P functions for Nigerian users and exited the Nigerian market, made this announcement on Wednesday.

“We are writing to inform you of an important regulatory update that impacts our users from the Republic of Nigeria,” KuCoin said.

The 7.5 per cent VAT charges on all accounts registered in Nigeria will take effect from July 8th.

“Starting from July 8th, 2024, we will begin collecting a Value-Added Tax (“VAT”) at a rate of 7.5 per cent on transaction fees in each trade for users whose KYC information is registered in Nigeria,” KuCoin said.

This comes months after the Nigerian government clamped down on crypto trading platforms, claiming that they aid currency speculators damaging the Nigerian naira.