Nigeria Tracks Crypto with New Tax Law, Tying Trades to IDs

In Brief

• Nigeria’s new tax law tracks crypto trades with TIN and NIN.
• VASPs must report customer and transaction data for compliance.
• Non-compliant exchanges face heavy fines and license risks.

Nigeria has launched a significant move to track cryptocurrency transactions through its new tax law. The Tax Administration Act 2025 links crypto trades to real identities by requiring the use of Tax Identification Numbers (TIN) and National Identification Numbers (NIN). 

This enables authorities to track crypto profits by linking them to declared income and tax records. The new system aims to reduce tax evasion, formalize the digital asset market, and enhance the country’s tax collection efforts.

The initiative aligns with global tax frameworks, including the OECD’s Crypto-Asset Reporting Framework. Under this law, Virtual Asset Service Providers (VASPs) must collect customer data such as names, contact details, and identification numbers. 

They are also required to report transaction information, including the type, value, and sales price of assets. In addition, VASPs must flag suspicious transactions and cooperate with anti-money laundering measures. The legislation strengthens Nigeria’s oversight of crypto markets while ensuring compliance with international standards.

Penalties and Compliance for Virtual Asset Service Providers

VASPs that fail to comply with the new regulations face hefty penalties. Non-compliant providers will be fined ₦10 million ($7,026.57) in the first month of default, with additional fines of ₦1 million ($702) for each subsequent month. They may also face suspension or loss of license. This increased oversight marks a shift toward stricter regulations and better transparency in Nigeria’s crypto sector.

For crypto users, this means increased scrutiny and additional reporting requirements. Exchanges will collect more personal and tax-related information, reducing anonymity. The law also mandates exchanges to retain customer data for up to seven years. These efforts reflect Nigeria’s commitment to integrating digital assets into the formal economy while boosting its tax revenue base.

Meanwhile, Bitcoin (BTC) is currently priced at $92,256.04. It gained 0.39% in the last hour and 1.71% in the last 24 hours. However, it has decreased by 1.28% over the past week.