A Landmark Move in Digital Asset Oversight
Nigeria has launched a transformative tax regulation that integrates cryptocurrency transactions into its national tax framework. Instead of attempting to alter blockchain technology, the government leverages existing national ID systems to trace transactions through real-world identities.
Identity Verification at the Core
Virtual asset service providers are now required to collect users’ Tax Identification Numbers (TIN) and National Identity Numbers (NIN), along with full names and residential addresses. This data must be securely maintained and submitted regularly to tax authorities.
- Monthly transaction reporting is now mandatory
- High-value transfers trigger enhanced scrutiny
- Suspicious activities must be reported to law enforcement
This regulatory shift represents a strategic advancement in financial governance, strengthening tax compliance and anti-money laundering efforts in Nigeria’s rapidly evolving digital economy.