• The president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), Obinna Iwunna, has commented on the implementation of the Finance Act, 2023 which includes a 10% tax on gains from cryptocurrency.
• Iwunna argues that this law is premature due to the lack of clarity regarding taxation and its connection to cryptocurrency recognition and infrastructure.
• He emphasized that collective definition needs to be established by policymakers before taxation measures can be set in place.
Nigerian Crypto Tax Move is ‘Premature’
Industry stakeholders seek clarity regarding the implications of taxation and its connection to the recognition of cryptocurrency and associated procedures.
President of SIBAN Comments
The president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), Obinna Iwunna, has commented on the implementation of the Finance Act, 2023 which was signed into law on May 28. This act introduces a series of tax reforms aimed at modernizing the country’s fiscal framework, including introducing a 10% tax on gains from digital assets such as cryptocurrencies.
Iwunna’s Criticism
Iwunna criticized implementing a 10% tax on cryptocurrencies in this uncertain climate, likening it to putting the cart before the horse. He highlighted how commercial banks cannot process cryptocurrency transactions yet so he questioned how taxing something not recognized or defined is possible. Therefore, he stressed that there needs to be clarity and enabling infrastructure before imposing taxes.
Collective Definition Needed
Iwunna stated that cryptocurrency involves security, currency and technology overseen by different entities such as Nigerian Securities and Exchange Commission (SEC) and Central Bank of Nigeria (CBN). He argued that these entities need to form a collective understanding before appropriate policies for regulations and taxation can be established.
(SIBAN) Reaching Out To SEC & CBN
When asked if Nigerian crypto stakeholders have approached SEC & CBN with their concerns, Iwunna confirmed they have reached out but are still awaiting response.
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