Nigeria Hits Crypto Firms with $7K Penalty for Non-Compliance

Nigeria has introduced new tax guidelines for the crypto industry, imposing a ₦10 million ($7K) fine on non-compliant firms. The rules require Virtual Asset Service Providers (VASPs), including crypto exchanges and peer-to-peer trading platforms, to register with the Nigeria Revenue Service (NRS) and verify customers' Tax Identification Numbers.

Under the new framework, VASPs must also collect taxes such as Value Added Tax (VAT), withholding tax, and stamp duties where applicable. These taxes must be sent to the NRS within the required timeframe, with proper records of transactions kept and tax returns submitted as necessary.

Individuals and businesses involved in virtual asset transactions are not exempt from these requirements, with a ₦50,000 ($36.60) penalty for non-compliance and an additional ₦25,000 ($18.39) per month until they comply.