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Akwaaba fintech friends,
Two thousand years ago, an emperor in Rome named Julius Caesar stamped his face on silver coins and demanded a share of every transaction across the empire. When questioned about the legitimacy of the tax, the instruction was simple, give to Caesar what belongs to Caesar.
Fast forward to this week, and Nigeria’s tax authority is attempting its own modern rendering. New guidelines from the Federal Inland Revenue Service aim to bring cryptocurrencies, stablecoins, and virtual assets directly into the national tax net through transaction level duties and withholding levies. On paper, the state's motive makes political sense: broaden a narrow tax base, capture revenue from a booming shadow economy, and formalize one of the most active digital asset markets on the planet.
The structural flaw lies in mistaking payment velocity for taxable wealth. In emerging markets, digital assets rarely function as speculative equity assets sitting in a vault; they act as cross border settlement rails, foreign exchange hedges, and essential liquidity buffers for merchants navigating severe local banking constraints. Stacking transaction level taxes on top of network gas fees misunderstands the core utility of the technology.
The short term result will not be a windfall for state coffers; it will be liquidity disintermediation. Forcing licensed exchanges (VASPs) to act as rigid tax collection agents immediately creates a pricing wedge between compliant platforms and informal options. In an ecosystem built on p2p resilience, heavy transactional friction will simply drive volume out of regulated channels and back into unmonitored P2P networks and off book trades.
When policy taxes the underlying settlement rails rather than the real economic value generated on top of them, it doesn't expand the state's reach, it just forces the market back into the dark.
— Jovin
Please find another week of fintech news below:
The Rundown
🚀 Product Launches
Busha expanded its innovation portfolio by launching a licensed prediction market named Signal.
Ozow, FNB, and RMB jointly launched an API-based digital payment solution in South Africa.
MoMo Uganda unveiled 'Code Yo Maali Yo' to drive cashless payments for boda bodas.
The Rwanda Development Bank officially launched a dedicated patient venture debt fund initiative.
Payaza partnered with Lebara Nigeria to boost digital payment adoption across the country.
Xara partnered with Flutterwave to introduce convenient WhatsApp banking solutions throughout Nigeria.
CLEA launched a new vendor payment solution aimed at streamlining African B2B transactions.
The cNGN stablecoin officially launched on Celo's network to empower fast cross-border payments.
Selcom launched a tailored digital banking platform to support business operations and growth.
💸 Fundraises
🗂️ Other News
African commercial banks altered their lending models to accommodate millions lacking credit histories.
Nigeria imposed a new thirty percent corporate income tax rate on cryptocurrency firms.
South Africa introduced a proposal targeting cross-border cryptocurrency transfers for a ban.
Kenya authorized authorities to seize cryptocurrency wallets associated with financial crime activities.
PalmPay entered initial discussions regarding a potential public offering on Hong Kong's exchange.
Nigeria mandated tax identification numbers for all individuals opening new cryptocurrency accounts.
TurnStay processed over $55 million in African travel payments, reaching a major milestone.
VALR's chief executive officer warned that new cryptocurrency regulations would harm South Africa.
4G Capital partnered with the IFC to boost MSME lending options across Kenya.
Nigeria issued its first comprehensive tax framework regulating cryptocurrencies and virtual digital assets.
Quote of the Week
TWIF FAQs
Which African nation processes the highest annual volume of P2P cryptocurrency transactions, despite having no direct fiat-to-crypto banking rails since 2021?
(Find the answer at the sign off below)
Editor’s Picks
Before we wrap this up…
Did you guess which country leads Sub Saharan Africa in total p2p crypto volume?
The answer is Nigeria. Following the central bank's banking restrictions in 2021, local users shifted en masse to informal P2P networks and stablecoin rails, driving over $56 billion in annual volume and making Nigeria the region's undisputed digital asset titan.
That’s all for today, friends. See you next Monday.
Asante.
