Kenya Passes Bill To Regulate And Tax Cryptocurrency
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Kenya Passes Bill To Regulate And Tax Cryptocurrency

Kenya advances a bill to regulate and tax cryptocurrencies, aiming to provide clarity and prevent financial crimes in the digital currency market.

Kenya is set to transform its legislative landscape with a bill targeting cryptocurrency regulation and taxation. 

The Capital Markets (Amendment) Bill, 2023, approved by the Finance Committee, is headed to the National Assembly for discussion.

The bill positions crypto assets as securities and introduces capital gains tax on cryptocurrencies in wallets and exchanges. It aims to provide legal clarity and prevent financial crimes associated with digital currencies.

See Also: Brazil To Impose 15% Crypto Tax On Overseas Crypto Exchanges Starting In 2024

Kimani Kuria, the committee chairman, emphasized the bill’s importance, stating, “We need laws to govern millions of Kenyans trading in cryptocurrencies.”

The draft bill requires Kenyans to pay capital gains tax on crypto transactions and mandates reporting all crypto transactions in Kenyan shillings to the Kenya Revenue Authority. 

Banks will also deduct a 20% excise duty on commissions and fees from crypto transactions.

Kenya’s move aligns with global efforts to regulate cryptocurrencies, like the UK’s active pursuit of undeclared crypto assets. 

See Also: US Lawmakers Urge Treasury to Revise Proposed Crypto Tax Rules

The bill’s progress will set a precedent in the region for digital currency regulation and place Kenya at the forefront of adapting to the digital currency market.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.