KuCoin (CRYPTO:KCS), a major global cryptocurrency exchange, will enforce a 7.5% value-added tax (VAT) on transaction fees for Nigerian users starting July 8.

This VAT applies specifically to transaction fees, not the overall transaction amount, affecting users with registered Know Your Customer (KYC) information.

The announcement has sparked uncertainty within Nigeria's crypto community, as the source of approval for this tax remains unclear—whether from the Nigerian government or other regulatory bodies.

Questions also linger regarding the VAT's scope, enforcement, and KuCoin's ability to comply amid local regulatory restrictions on cryptocurrency conversions to fiat currency.

As the implementation date nears, clarity from both KuCoin and Nigerian authorities is crucial to mitigate market disruptions and address concerns among crypto traders.