By Chukwuemeka Umesi
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The Federal Inland Revenue Service (FIRS) has announced its intention to prepare an executive bill to regulate the cryptocurrency landscape in Nigeria. The chairperson of the FIRS, Mr. Adedeji, revealed this in a recent statement, explaining that the bill aims to simplify tax laws, harmonize revenue collection, and replace obsolete tax laws with new ones that align with current economic realities. The FIRS chairperson said Nigeria has seen a significant increase in cryptocurrency transactions in recent years, with many individuals and businesses investing in digital currencies such as Bitcoin, Ethereum, and others. However, the lack of clear regulations and guidelines has created a gray area, making it challenging for tax authorities to collect revenue from cryptocurrency-related activities.
The proposed executive bill seeks to address the following objectives: The bill aims to simplify tax laws related to cryptocurrency transactions, making it easier for taxpayers to understand and comply with tax regulations. The bill seeks to harmonize the collection of revenue from cryptocurrency transactions, ensuring that all tax authorities are aligned and working towards a common goal.
The bill aims to replace outdated tax laws with new ones that are relevant to current economic realities, taking into account the rapidly evolving cryptocurrency landscape.
The bill will provide clear guidelines and regulations for cryptocurrency transactions, including the registration of cryptocurrency exchanges, wallet providers, and other related services.
The proposed executive bill is expected to have several benefits, including: By providing clear guidelines and regulations, the bill is expected to increase tax revenue from cryptocurrency transactions.
The bill will promote transparency in cryptocurrency transactions, reducing the risk of tax evasion and money laundering. The bill will provide a regulatory framework for the growth and development of the digital economy in Nigeria.The bill will protect investors by providing clear guidelines and regulations for cryptocurrency transactions.
The FIRS has announced that it will conduct extensive research and consultation with stakeholders, including cryptocurrency exchanges, wallet providers, and other related services, to ensure that the bill is well-informed and effective. The FIRS has not disclosed a specific timeline for the completion of the bill, but it is expected to be submitted to the National Assembly for passage in the near future.
The proposed executive bill to regulate the cryptocurrency landscape in Nigeria is a step in the right direction. By simplifying tax laws, harmonizing revenue collection, and replacing obsolete tax laws, the bill is expected to promote transparency, increase tax revenue, and boost the digital economy. The FIRS’s commitment to research and consultation will ensure that the bill is well-informed and effective, providing a regulatory framework that supports the growth and development of the cryptocurrency industry in Nigeria Adedeji said.