Nigeria has one of the highest rates of cryptocurrency adoption worldwide, while maintaining a complex relationship with digital assets. Despite ongoing legal issues involving Binance and the detention of one of its executives, the Nigerian government remains receptive to crypto businesses. Information Minister Mohammed Idris emphasized that many crypto companies operate within Nigeria without facing legal challenges, highlighting efforts to strengthen regulations instead of hindering the industry. The lawsuit against Binance, initiated in February, accuses the exchange of contributing to the collapse of the naira and claims $2 billion in back taxes. Following regulatory changes in December 2024, digital asset providers in Nigeria must now secure permission for advertising through third parties. According to Chainalysis, Nigeria received $59 billion in cryptocurrencies between July 2023 and June 2024, ranking second in global adoption. However, authorities face challenges in effectively taxing crypto transactions due to the prevalence of retail trading that evades oversight. Additionally, importers utilize cryptocurrencies to navigate the turmoil of the naira's depreciation, making reporting these transactions to the government problematic.

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