Kenyan lawmakers open talks about taxing cryptocurrencies, here’s what’s known



Kenya is considering whether or not it should tax the cryptocurrency sector. There is a law awaiting approval in Kenya, that would give crypto assets the signal of legalization as tradable assets. The name of this bill is the Capital Markets (Amendment) Bill 2022. According to a report by the United Nations, approximately 8.5 percent of the population of Kenya, i.e. 4.25 million people in that country, own crypto assets. If approved, the law would require investors to pay capital gains tax to the Kenya Revenue Authority. Kenyan banks will withhold a 20 percent tax levy on cryptocurrency transactions.

Investors will also be required to disclose their details Cryptographic ownership For government financial oversight, it is called Capital Markets Authority.

“The amendment will provide specific provisions governing digital currency transactions in Kenya, including the definition of digital currencies, their creation through cryptocurrency mining and provision of regulations on digital currency trading,” CoinDesk report The sponsor of the bill, MP Abraham Kirwa, was quoted as saying.

With no rules governing the crypto sector, Kenya has become a hotspot for gathering Crypto scammers.

In 2021, crypto scammers reportedly looted Kenyans up to $120 million (roughly Rs. 915 crores). The stats were a statement By Kenyan Cabinet Minister Joe Moshiro speaking at a conference in March.

The minister, at the time, urged people to continue reporting fake or suspicious entities so that others would be alerted in time.

The cryptocurrency market in Nigeria, Kenya, Tanzania and South Africa together witnessed a growth of 1,200 percent and the market valuation reached $105.6 billion (roughly Rs. 775 crores) in a single year, i.e. Report By Chainalysis claimed in September last year.

Against the backdrop of this exponential growth trajectory, cryptocurrency players from all over the world are flocking towards the African continent. in October, Coinbasesupported Mara digital wallet Service in Kenya as well as Nigeria.

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