The Nigeria Revenue Service (NRS) has ordered all Virtual Asset Service Providers (VASPs) and peer-to-peer (P2P) escrow operators to make a valid Tax Identification Number (Tax ID) a mandatory requirement for activating new accounts.
Tightening crypto tax compliance
The directive is part of a broader effort by the NRS to tighten tax compliance requirements across Nigeria’s cryptocurrency ecosystem. By mandating the submission of a Tax ID at the point of account activation, the agency aims to ensure that participants in the digital asset market are properly registered within the national tax system.
The order specifically impacts VASPs—which include cryptocurrency exchanges and custodians—as well as the escrow operators that facilitate P2P trading, a popular method for buying and selling crypto in Nigeria.
Impact on the crypto ecosystem
This move signals a shift toward greater transparency and oversight in the Nigerian crypto market. For new users, the process of onboarding onto these platforms will now require formal tax documentation, reducing the level of anonymity previously available during account setup.
By linking crypto account activations to Tax IDs, the NRS can more effectively track financial activities and ensure that gains from digital assets are appropriately declared and taxed.
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