Nigeria Uses Tax IDs to Trace Crypto Activity Without Onchain Monitoring
Nigeria now requires crypto providers to link transactions to Tax IDs and NINs under new tax reforms, bypassing direct blockchain surveillance.Summary
Nigeria has implemented sweeping tax reforms, effective January 1st under the Nigeria Tax Administration Act (NTAA) 2025, mandating that cryptocurrency service providers link all transactions to customers' Tax Identification Numbers (TINs) and National Identification Numbers (NINs). This identity-based reporting strategy aims to make crypto activity visible to tax authorities by matching transactions against existing tax and identity records, effectively replacing the need for costly and complex on-chain monitoring. Virtual asset service providers (VASPs) must file regular returns detailing transaction nature, value, and customer identification data, and are required to flag suspicious activity, integrating oversight into AML frameworks. This approach addresses previous compliance gaps where linking trades to identifiable taxpayers was difficult. Nigeria's move aligns with the international trend, mirroring the OECD’s Crypto-Asset Reporting Framework (CARF).
(Source：Cointelegraph)