Nigeria enacts new tax law, tightens cryptocurrency transaction regulation

Nigeria has just passed a new tax law requiring cryptocurrency transactions to be linked to user identities through Tax Identification Number (TIN) and National Identification Number (NIN). This regulation aims to enhance traceability and tax management while reaffirming that it does not affect the core security of blockchain technology.

Under the new law, virtual asset service providers (VASP) are responsible for collecting user information, including TIN/NIN, full name, and residential address. These entities must submit monthly transaction reports to the Nigerian tax authorities, helping officials monitor cash flows and tax obligations arising from cryptocurrency activities.

Additionally, VASPs are required to flag and report large or suspicious transactions to law enforcement agencies. This move indicates Nigeria’s tightening of the legal framework for the cryptocurrency market, aiming for financial transparency, anti-money laundering measures, and increasing revenue from the digital asset sector.