The Federal Government through the Minister of Finance, Budget and National Planning, Zainab Ahmed has said there is a provision to start imposing taxes on cryptocurrency and other digital assets investing in the 2022 finance bill.
A statement signed late Thursday by the Senior Special Assistant to the Vice President on Media and Publicity, Laolu Akande noted that the finance bill was discussed at an extraordinary virtual meeting of the National Economic Council presided over by Vice President Yemi Osinbajo.
The meeting also deliberated on other prevailing issues which include Taxation, Revenue Generation, Climate Change and the Green Growth pillar of the bill.
If passed into law, this will avail the government an opportunity to start generating revenue from growing cryptocurrency investment in Nigeria.
Investor King learnt that the federal government is already talking to Investors in Europe, US and Canada to invest in Nigeria’s gas sub-sector.
According to the statement, the meeting agreed that there should be incentives for the natural gas sector and discouragement of gas flaring.
“Under the climate change and green growth bill, there will be incentives for natural gas” the statement partly read.
With respect to cryptocurrency, the bill these clarify the basis for the taxation of Cryptocurrency and other Digital Assets in line with the Government’s policy thrust of enhancing the cross-border and international taxation of growing e-commerce with emerging markets.
It could be recalled that the CBN in 2021 directed that all commercial banks should close accounts of persons or entities involved in cryptocurrency transactions.
However, it seems the government is taking a soft position on cryptocurrency in recent times particularly as the largest crypto exchange in the world, Binance now accept naira deposit and withdrawal.
Meanwhile, Investors King understands that if the bill is passed into law, Nigeria will join other countries which include the Kingdom, the United States of America, Australia, India, Kenya and South Africa that are currently taxing cryptocurrency.
Speaking further on the finance bill 2022, the Minister of Finance noted that the proposed bill is anchored on five fundamental policy drivers which are tax equity, climate change, job creation and economic growth, tax incentive reform and revenue generation.
Unfriendly Crypto Market Forces Crypto Exchange Luno to Trim Workforce
Crypto exchange platform Luno has trimmed its workforce by 35% following a turbulent year that rocked the crypto market.
The company has a total headcount of 960 team members according to its Linkedin profile, with its recent proposed layoff plan, the decision will impact more than 330 jobs at the company.
The company’s CEO Marcus Swanepoel in an Internal message shared with employees disclosed that the downsizing of its workforce was necessitated to enable the company effectively navigate the current crypto winter.
The message reads in part,
“As mentioned at our January kick-off earlier, it is with deep regret that I have to announce that we will be reducing our overall Luno team by 35%, impacting Lunauts in all of our regions.
“2022 has been an incredibly tough year for the broader tech industry and in particular the crypto market. Luno unfortunately hasn’t been immune to this turbulence, which has affected our overall growth and revenue numbers.
“As a result, we have to readjust our focus to maintaining our leadership position in our core markets, and continue to lay a stronger yet sustainable foundation for the business as we prepare to come out of this current cycle in a very strong position”.
The CEO further disclosed that the company’s decision will regrettably affect some of its smartest, kindest, and most hard-working team members.
Despite the collapse of one of crypto’s top exchange platforms FTX, which has sent shocking waves to the crypto industry, Luno disclosed that it was not affected even though its parent company Genesis Global faced liquidity pressures until it eventually filed for Chapter 11 bankruptcy protection.
Meanwhile, several crypto companies have been forced to slash their workforce following the FTX contagion. Companies such as Coinbase, Crypto.com, and Kraken have all slashed a significant part of their workforce.
Investors King understands that more than 30,000 jobs have been cut across the crypto industry since last year. So far in 2023, more than two crypto-related firms have implemented job cuts.
Binance CEO Accuses FTX of Paying $43 Million to Tarnish Binance Image
Founder and CEO of Binance, Changpeng Zhao (CZ) has accused FTX of spreading false information about his cryptocurrency exchange company, Binance.
Investors King reports that Zhao claimed that FTX paid the sum of $43 million to a news organisation that reports on cryptocurrency in order to produce negative publications and tarnish the image of Binance.
CZ discussed the Binance FUD during an ‘Ask Me Anything’ (AMA) session on Twitter.
The Binance Founder said some organisations have continuously generated and published negative news to improve their trade.
He noted that such a media firm with crypto skeptics like Peter Schiff who keeps criticizing its brand lacks understanding.
Zhao admitted that he usually read and pay attention to the false impression the negative articles create about Binance.
He however said, “I don’t think it’s going to stop, but I don’t think it’s going to bother us that much going forward. People have now come to their own judgments. They are pretty smart today, most people are no longer fooled by clickbait titles.”
FTX Trading Ltd. is a bankrupt company that previously operated a cryptocurrency exchange and crypto hedge fund with over one million users before it folded up in November, 2022, Investors King understands.
Speaking on the AI technology Binance is making use of, CZ stated that the technology is in use in many parts of the brand.
He added that the AI will be further employed within the blockchain industry to enhance data analysis and detect critical risk changes.
“For example, roughly 75% of Binance’s customer support is handled via AI, along with risk management, transaction monitoring, fraud detection, and market manipulation detection.
“With machine learning becoming more and more mature and more stronger, there will be more and more applications,” CZ said.
Crypto Exchange Platform Coinbase Records Uptick in Trading Volume
American crypto exchange platform Coinbase has recorded an uptick in its trading volume in the first few weeks of January.
Reports disclose that the crypto exchange stands out amongst other platforms that are currently witnessing declines in trading volumes.
Conibase recorded an increase of 0.3% when compared to the last quarter of 2022, which signals a change in the direction given that the exchange saw an ongoing decline in volume in 2022.
Meanwhile, almost all other exchanges recorded less trading when compared to previous quarters. Top crypto platform Binance saw a decline of 6.2% in average daily volume, while Bitfinex and Kraken saw declines of 25.5% and 13% respectively.
Following the surge in Coinbase trading volumes, analysts at JP Morgan wrote, “We think Coinbase has been cultivating a reputation as a reputable, trusted intermediary for some time. We think that reputation is helping to drive greater market share as activity levels rebound”.
While all other exchanges are still grappling with the ripple effects of FTX collapse which has triggered increased scrutiny over the unregulated exchange in the industry, analysts revealed that coinbase remains an exception due to the fact that it did not have direct exposure to FTX and was insulated from the direct legal and reputational fallout from its demise.
Investors King understands that due to the collapse of FTX in November last year, Coinbase shares declined to more than 8%, which extended a slide that pushed the crypto exchange to its lowest point since its market debut in 2021.
Also, nineteen months after going public with a market cap of over $85 billion, Coinbase fell below the $10 billion mark.
On the other hand, the collapse of FTX has no doubt sent shocking waves to the crypto industry, as it has affected the confidence of investors, which has seen crypto companies that customized assets with FTX currently facing crisis.
News3 weeks ago
NASIMS Assures NPower Batch C2 Beneficiaries of Stipend Arrears Payment
Forex2 weeks ago
Dollar To Naira Black Market Exchange Rate For Today 13th January 2023
Government5 days ago
NPower Moves to Settle Batch C2 Stipend Arrears
Appointments4 weeks ago
Wema Bank Reshuffles Management Team, Assigns New CEO
Loans3 weeks ago
NPower Announces NEXIT Soft Loan Process for N-Agro Beneficiaries
Cryptocurrency3 weeks ago
CBN to Regulate Cryptocurrency Transactions With New Policy
Government4 weeks ago
LASG to Commence Construction of Fourth Mainland Bridge Worth $2.5bn in 2023
Black Market Rate3 weeks ago
Dollar To Naira Black Market Exchange Rate For Today 9th January 2023