Nigeria Cracks Down on Crypto Anonymity with TIN-First Requirement

Nigeria has taken a significant step towards regulating its cryptocurrency market by requiring new users of regulated crypto platforms to obtain a Tax Identification Number (TIN) before their accounts can be activated. This move aims to bring millions of peer-to-peer (P2P) traders into the country's formal tax system.

The measure is part of the Nigeria Revenue Service's (NRS) Guidelines on the Taxation of Virtual Assets, which also impose reporting obligations on exchanges and marketplace operators. These platforms will now be required to verify customer identities, retain transaction records, report taxable activities, and remit applicable taxes within prescribed timelines.

The guidelines have been welcomed by experts as a significant shift in Nigeria's approach to cryptocurrencies. The country has consistently ranked among the world's largest cryptocurrency markets, with digital assets widely used for remittances, cross-border payments, savings, and as a hedge against naira depreciation.