Nigeria Cracks Down on Crypto Trading, Requires TINs for P2P Traders

Nigeria has taken a significant step towards regulating its booming cryptocurrency market by requiring new users of regulated crypto platforms to obtain a Tax Identification Number (TIN) before their accounts can be activated.

The TIN-first requirement is one of the key provisions in the Nigeria Revenue Service's (NRS) newly issued Guidelines on the Taxation of Virtual Assets, aimed at bringing millions of peer-to-peer (P2P) traders into the country's formal tax system.

Gilbert Joekpata, a crypto analyst and investment strategist, warned that the guidelines should serve as a wake-up call for Nigeria's large crypto community, particularly retail traders who previously assumed their activities were beyond the reach of tax authorities.

The NRS guidelines also impose reporting obligations on exchanges and marketplace operators, effectively turning them into tax compliance partners for the government. Registered exchanges will now withhold certain taxes directly from cryptocurrency transactions, with a 1.5 percent stamp duty on eligible fiat-to-token and token-to-fiat transfers.