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Source: Сointеlеgrаph

On Nov. 21, Kenya’s capital markets law was amended to require those who own or deal in cryptocurrencies to provide information about their activities to the country’s Capital Markets Authority for tax purposes, local media reported. Kenya has extended financial regulation to cryptocurrencies for the first time.

Under the Capital Markets (Amendment) Act, Kenyans will pay capital gains taxes to the Kenya Revenue Service when they sell or use digital currencies. Cryptocurrency held for less than a year will be subject to income tax and after that, capital gains tax will apply. Kenya has an income tax that ranges from 10% to 30%. Banks already charge an excise tax of 20% on all commissions and fees on transactions with cryptocurrencies.

The author of the bill, MP Avraham Kirva, said:

“The amendment will provide […] defining digital currencies, creating them through crypto-mining and ensuring regulation of digital currency trading. […] The amendment will also define the responsibilities of persons or businesses trading in digital currencies, provide for their taxation, ownership and ensure the promotion of innovation in this area.

The bill will define digital currencies as securities, provide for the licensing of individual crypto traders, and create a centralized electronic registry of digital currency transactions in the country. It will also introduce consumer protection measures, such as the creation of a fund “to protect investors from financial losses resulting from the failure of a licensed broker or dealer” and privacy guarantees.

Related: From smart insurance to online document verification: here’s how Near aims to improve Kenya

A Chainalysis survey published in September ranked Kenya 19th in the world in cryptocurrency adoption and fifth in peer-to-peer trading. The proposed amendment came at the same time as Kenya’s President William Ruto called to double the country’s tax base. There are about 4 million cryptocurrency users in the country. Approximately 8.5% of the population, which makes Kenya the fifth largest in the world in terms of ownership.


Source: Сointеlеgrаph

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