The president of the Stakeholders in Blockchain Technology Association of Nigeria , Obinna Iwunna, has commented on the, which was signed into law on May 28. According to Iwunna, the successful execution of the law will be challenging due to its premature introduction.
The act introduces a series of tax reforms aimed at modernizing the country’s fiscal framework. Among its provisions was the introduction of a 10% tax on gains from the disposal of digital assets, includingIn a Cointelegraph interview, Iwunna criticized implementing a 10% tax on cryptocurrencies in the current uncertain climate, likening it to putting the cart before the horse.
Iwunna stressed cryptocurrency involves security, currency and technology, overseen by the Nigerian Securities and Exchange Commission , the CBN and NITDA, respectively. Each entity has a specific role to play, but a comprehensive and unified understanding of cryptocurrency is crucial. Once a collective definition is established, policymakers can develop appropriate policies, regulations and taxation measures.
When asked if Nigerian crypto stakeholders have approached the SEC and CBN with their concerns, Iwunna confirmed that they have reached out and are currently awaiting a response. While some discussions have taken place, no definite decisions have been made.Acknowledging the government’s aim to broaden the tax base, Iwunna stated that it is important to ensure that taxation does not impede the growth of the cryptocurrency industry.
The act introduces a series of tax reforms aimed at modernizing the country’s fiscal framework. Among its provisions was the introduction of a 10% tax on gains from the disposal of digital assets, including cryptocurrencies.