FIRS To Introduce New Law For Regulating Cryptocurrency Activities

FIRS To Introduce New Law For Regulating Cryptocurrency Activities

The Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, has revealed that the Service would be seeking the support of the National Assembly to enact a law on the crypto industry.

Adedeji said this on Saturday at a stakeholder engagement with the Senate and House Committee on Finance organised by the Intergovernmental Relations Department of the Service with the theme, ‘Repositioning The FIRS To Achieve Its Mandate.’

He said, “The plan first is to have the law that regulates it, and that is why you see that we are here with the legislature, which will be the base of charging. And that is done in any other place in the world when you have this innovation or system, so you just have to get ready for it because you can’t go away from it. So we just have to plan to regulate it in such a way that it is not injurious to the economic development of Nigeria.”

During his opening speech, Adedeji informed the lawmakers about the proposed bill.

He told them, “Just to put you on notice, by September, we are proposing a law that would overhaul the whole process of revenue administration in Nigeria, harmonising, recoding and simplifying the tax laws that we have. For example, in the Stamp Duty Act of 1939, when there was no internet connection, we needed to bring it up.

“Today, we cannot run away from cryptocurrency but as we stand today, there is no law anywhere in Nigeria that regulates cryptocurrency. We cannot run away from it.”

Cryptocurrency platforms have been subjected to intense scrutiny following the exit of Binance, which was accused by the Nigerian government of manipulating the naira-to-dollar exchange rate.

Recently, Nigeria imposed a 7.5 per cent Value-Added Tax on crypto transaction fees. This was revealed by a cryptocurrency exchange, KuCoin, when it told its users it would start VAT collection on July 8, 2024.

At the end of 2023, the Central Bank of Nigeria lifted its ban on banks operating accounts for crypto service providers, which signalled a shift towards a more open but regulated approach, which was welcomed by many local crypto users.