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.
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.
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.