KuCoin, one of the world’s leading cryptocurrency exchange platforms, has announced the implementation of a 7.5% Value-Added Tax (VAT) on transaction fees, effective July 8th, 2024. This new regulation will impact all users whose Know Your Customer (KYC) information is registered in Nigeria. The VAT will be applied exclusively to transaction fees, not the overall transaction amount.

For example, if a user buys 1,000 USDT worth of Bitcoin, they would typically incur a fee of 1 USDT at the standard 0.1% fee rate. With the new VAT, an additional charge of 0.075 USDT would be applied to this fee, resulting in a total fee of 1.075 USDT. Consequently, the net amount available for the transaction would be 998.925 USDT. KuCoin clarified that the VAT would cover all types of transactions on its platform. This move aligns with recent regulatory updates and demonstrates the company’s commitment to complying with local tax laws.

The announcement has garnered mixed reactions from the Nigerian cryptocurrency community. Some users have expressed concern over the added cost to their transactions, while others recognize it as a necessary step towards greater regulatory compliance and legitimacy for cryptocurrency trading in Nigeria. KuCoin encourages affected users to seek assistance through their Telegram group or by contacting the online support team for further guidance on the new tax regulations.

As Nigeria continues to evolve its regulatory framework for digital assets, this development underscores the importance for traders to stay informed about local laws and their potential impacts on trading activities. The KuCoin team expressed their gratitude for users’ cooperation and understanding, reiterating their commitment to providing a secure and compliant trading environment.

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KuCoin’s introduction of a 7.5% VAT on transaction fees for Nigerian users marks a significant step in aligning with local tax regulations. While the additional cost may concern some users, it underscores the importance of regulatory compliance in fostering a legitimate and sustainable cryptocurrency trading environment in Nigeria.

Source: investorsking.com

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New Zealand’s Inland Revenue Department (IRD) has announced that over 200,000 citizens failed to declare their cryptocurrency income in their tax returns. The tax authority emphasized that virtual assets are taxable and outlined plans to take stronger measures to track and ensure compliance among those not disclosing their digital asset earnings.

IRD Issues Letters to Crypto Taxpayers

The IRD is honing in on taxpayers who have not declared their crypto earnings, focusing particularly on those actively dealing with cryptocurrencies but omitting this income from their tax returns. New Zealand updated its guidelines on digital assets in 2020, treating cryptocurrencies as a form of property for tax purposes. Consequently, income from trading these assets is taxable.

The updated rules specify that digital assets and income earned from mining are taxable under certain circumstances. The IRD has identified over 227,000 unique crypto users in the country, with over 7 million transactions valued at NZD 7.8 billion (approximately USD 4.77 billion). This data has enabled the tax authority to pinpoint individuals who have not paid their taxes accordingly and those with significant holdings.

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Stepping Up Compliance Activities

Trevor Jeffries, an IRD spokesperson, highlighted that the current high values of crypto assets make it an opportune time for investors to consider their tax obligations. He stressed the importance of declaring all taxable activities and warned of the risks associated with non-compliance.

The IRD has provided extensive guidance on crypto taxes and last year notified high-risk customers, giving them a chance to rectify non-compliance issues before facing an audit. The department has sent a new round of letters to crypto investors who have yet to declare their income properly.

Jeffries noted that the IRD is stepping up compliance activities for taxpayers with digital assets and reminded users that the authority can identify them through blockchain analytics. The IRD collaborates with exchanges both domestically and internationally to gather relevant information and works with other tax jurisdictions to receive data on customers’ crypto assets and transactions outside New Zealand.

Need for Comprehensive Crypto Regulations

Despite the IRD’s efforts, New Zealand’s crypto regulations remain largely undeveloped. The Reserve Bank of New Zealand (RBNZ) stated last year that a regulatory approach was not yet necessary but called for increased vigilance. However, Minister of Commerce and Consumer Affairs Andrew Bayly believes the government should adopt a more hands-on approach to regulating the sector. In April, Bayly suggested that New Zealand should take a proactive and innovation-friendly approach to digital assets and blockchain, supporting the industry’s growth and considering recommendations from a lawyer committee inquiry.

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New Zealand’s IRD is actively pursuing taxpayers who have not declared their cryptocurrency income, emphasizing the importance of compliance in light of updated guidelines. While the country’s regulatory framework for crypto remains in development, the IRD’s actions indicate a growing focus on ensuring that digital asset transactions are properly reported and taxed. As the crypto market continues to evolve, both investors and authorities must navigate the complexities of taxation and regulation to foster a fair and transparent financial environment.

Source: bitcoinist.com

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IOTA has announced a strategic partnership with Tokeny to integrate Tokeny’s enterprise-level tokenization technology into the IOTA Ethereum Virtual Machine (EVM). This collaboration aims to improve on-chain compliance and control over token transactions, ensuring that only qualified investors can participate, according to the IOTA Foundation Blog.

Enhancing Enterprise-Level Tokenization on IOTA EVM

For companies venturing into decentralized finance (DeFi), adhering to legal requirements such as anti-money laundering (AML) and securities regulations is crucial. Compliance protects investors, ensures transparency and fairness, maintains market integrity, and builds trust—essential elements for the sustainability of financial markets. Additionally, compliance allows companies to access critical financial services, maintain their reputation, and expand globally.

Key Integration Details: Tokeny Meets IOTA EVM

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The integration of IOTA EVM with Tokeny’s technology aims to bolster enterprise tokenization and secure digital asset management within IOTA’s ecosystem. Tokeny, a leader in white-label tokenization platforms, will enhance how enterprises leverage IOTA EVM by integrating its cutting-edge compliance technology for enterprise-level tokenization.

IOTA EVM:

• Designed to be a high-velocity, plug-and-play environment.
• Supports the seamless deployment and management of smart contracts within the IOTA network.
• Leverages IOTA’s core strengths, making it an ideal platform for enterprises looking to innovate with tokenization solutions.

Tokeny’s Compliance Infrastructure:

• Uses the ERC-3643 open-source suite of smart contracts to facilitate the issuance, management, and transfer of permissioned tokens.
• Integrates automated on-chain compliance checks to ensure transactions are restricted to verified investors.
• Provides issuers with control over their tokens, including capabilities to freeze or recover them if necessary.

Leadership Insights

Luc Falempin, CEO of Tokeny: “This partnership aligns with our vision of enabling institutions to leverage desired network benefits. IOTA’s unique Layer 1 protocol architecture enables scalability and fee-less transactions. Our role is to facilitate rapid tokenization to accelerate adoption and meet evolving market demands.”

Dominik Schiener, Co-Founder of IOTA: “We are thrilled about Tokeny’s integration as it perfectly aligns with our mission to democratize access to tokenized real-world assets (RWA) and financial instruments in our ecosystem. Tokeny stands out as the most advanced institutional-grade tokenization platform supporting market standard ERC-3643, poised to accelerate institutional tokenization on IOTA EVM.”

Impact on Enterprises

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Enterprises and developers looking to tokenize assets securely on IOTA EVM can now conduct large transactions with the assurance of automatic compliance checks, thanks to Tokeny. This ensures interactions only with qualified investors and provides complete control over digital assets.

This integration not only opens up new possibilities for efficiently managing and transferring digital securities but also ensures that these processes meet stringent compliance standards. Whether the goal is to issue, transfer, or manage digital assets, the enhanced IOTA EVM, bolstered by Tokeny’s technology, offers a robust foundation for enterprise projects.

Source: blockchain.news

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