Cryptocurrency exchanges and peer-to-peer (P2P) trading platforms operating in Nigeria now face a ₦10 million penalty if they fail to comply with the country’s newly introduced tax requirements for virtual asset businesses.
The sanctions are contained in the Nigeria Revenue Service (NRS) Guidelines on the Taxation of Virtual Assets, released on Monday to provide a framework for implementing the tax provisions of the Nigeria Tax Administration Act, 2025. The rules place fresh compliance obligations on Virtual Asset Service Providers (VASPs), including mandatory tax registration, customer verification, tax collection, record keeping and periodic reporting.
Under the new framework, operators that fail to meet the requirements will be fined ₦10 million for the first month of default, followed by an additional ₦1 million for every subsequent month until they comply. Brandspur Banking News Desk reports that the guidelines form part of Nigeria’s broader effort to bring the rapidly expanding digital asset industry into the country’s formal tax system.
To continue operating legally, crypto exchanges and P2P platforms must register with the NRS and ensure every customer provides a valid Tax Identification Number (TIN) before activating an account. They are also required to deduct applicable withholding taxes, collect Value Added Tax (VAT) and stamp duties where necessary, remit the funds within statutory deadlines and file the required tax returns.
The guidelines further require operators to maintain comprehensive transaction records and comply with reporting obligations under the Nigeria Tax Administration Act. According to the NRS, the measures are intended to improve tax compliance, increase transparency and ensure virtual asset transactions contribute to government revenue alongside other sectors of the economy.
The tougher compliance regime follows President Bola Tinubu’s Executive Order on Virtual Assets Coordination, which came into effect on July 17, 2026. The order established a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN) to coordinate the regulation of cryptocurrencies, stablecoins, tokenised assets and other digital assets across government agencies without creating a separate regulator.
The tax obligations extend beyond exchanges. Individuals and businesses involved in virtual asset transactions who fail to register for tax purposes will face a ₦50,000 penalty for the first month of non-compliance and ₦25,000 for each additional month until they fulfil the registration requirement. Every person carrying out taxable virtual asset activities in Nigeria is expected to obtain a Tax Identification Number under the new rules.
The guidelines also provide clarity on the tax treatment of cryptocurrency trading, staking, mining, decentralised finance (DeFi) rewards, liquidity mining, airdrops, royalties, hard forks, cross-border crypto payments, stablecoins, wallet-to-wallet transfers and other virtual asset transactions.
The latest move signals the Federal Government’s determination to strengthen oversight of Nigeria’s growing crypto industry while improving tax collection from the sector. It also comes as the Securities and Exchange Commission continues expanding its regulatory framework for digital asset firms, admitting more companies into its Accelerated Regulatory Incubation Programme to promote responsible innovation alongside stronger compliance.
