The Securities and Exchange Commission (SEC) has introduced regulatory amendments aimed at taxing cryptocurrency transactions and expanding crypto licensing to enhance government revenue and investor security.
According to a Bloomberg report, the SEC confirmed via email that the new regulations will ensure all eligible transactions on regulated exchanges are taxed, although specific revenue projections were not disclosed.
Additionally, the SEC plans to issue permits for centralized exchanges, allowing residents to trade on platforms that facilitate monitoring, transparency, and taxation. The regulator expressed confidence that these platforms will offer investors greater protection and security.
This move aligns with global trends in crypto regulation and follows the Central Bank of Nigeria’s (CBN) policy shift on digital assets. In December 2023, the CBN released operational guidelines for Virtual Asset Service Providers (VASPs), reversing its February 2021 ban on crypto-related banking transactions.
The push for taxing digital assets began in December 2022, when former Finance Minister Zainab Ahmed announced that the 2022 Finance Bill included provisions for taxing cryptocurrencies.
With 50 cryptocurrency exchanges already applying for licenses as of September 12, 2024, SEC Director-General Emomotimi Agama emphasized that these regulations will further integrate Nigeria’s crypto market into formal financial structures.
