KuCoin’s 7.5% VAT Charge on Transaction Fees Sparks Concerns Among Nigerian Crypto Users
KuCoin cryptocurrency exchange announced on July 3 a major regulatory update that will affect its users in Nigeria. The exchange will implement a transaction fee tax on all trades executed on the platform for its Nigerian users.
Effective July 8, 2024, the company will begin collecting a 7.5% value-added tax (VAT) on transaction fees for users whose Know Your Customer (KYC) information is registered in Nigeria.
The 7.5% VAT will specifically apply only to the transaction fee and not the total transaction amount. For example, if a user buys 1,000 USDT worth of Bitcoin, the standard transaction fee would be 1 USDT, calculated at a 0.1% fee rate. The VAT on this fee would be 0.075 USDT, bringing the net amount for the transaction to 998.925 USDT.
✅KuCoin introduces 7.5% VAT on trading fees for Nigeria Users
We are writing to inform you of an important regulatory update that impacts our users from Nigeria.
Starting from July 8th, 2024, we will begin collecting a Value-Added Tax (“VAT”) at a rate of 7.5% on… pic.twitter.com/Y6elL3RjFi
— KuCoin Africa (@KuCoinAfrica) July 3, 2024
The new policy will comply with local tax regulations while maintaining KuCoin’s commitment to regulatory standards.
KuCoin encouraged all Nigerian users to review this update and adjust their trading strategies accordingly to accommodate the new VAT charges.
Despite the new policy, KuCoin is among the crypto websites currently banned by the Nigerian government.
KuCoin’s announcement has left many stakeholders perplexed, particularly without clear guidance from regulatory authorities.
or mass exodus from the platform if it not properly explain,it can be wrongly interpreted that kucoin or the government might defraud Nigerian users, unless they explain
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