- The Kenyan government is seeking to regulate the nation’s cryptocurrency industry.
- A parliamentary committee has introduced a bill proposing taxation on the asset class.
- The bill will target cryptocurrency investors and entities operating within the region.
As cryptocurrencies gain traction, global financial watchdogs unveil guidelines to foster industry regulation and transparency. From compliance measures to taxation, efforts are being intensified to bring oversight to the burgeoning asset class.
Against this backdrop, Kenyan lawmakers have proposed a new bill to define and regulate the nation’s crypto industry.
Kenya’s New Bill to Tax Cryptocurrencies
According to a local report on December 4, members of the Kenyan parliamentary committee have endorsed the Capital Markets (Amendment) Bill, which aims to regulate and tax the growing digital currency trade within the nation.
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Sponsored by Mosop MP Abraham Kirwa, the bill aims to introduce taxation for cryptocurrency exchanges and investors within the region, targeting the over four million Kenyans estimated to be engaged in cryptocurrency trading.
If approved, the bill will impose transaction fees akin to excise duty charged on bank transactions. In addition, Kenyans who own or deal in digital currencies must provide the Capital Markets Authority (CMA) with information regarding the amount of their virtual currency holdings in Kenya shillings.
MP Kirwa highlighted the importance of the proposed amendment in ensuring the regulation of Kenya’s industry.
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“Cryptocurrency is the future. This will be the norm because we will buy and sell using cryptocurrencies. It just takes seconds to transfer a million dollars and nobody is seeing the transaction.”
The bill will also make provisions to govern the digital currency transactions within Kenya, its creation through crypto mining, and provide regulations for trading and ownership.
To find out more about crypto regulations in Kenya, read here:
Worldcoin Risks Suspension in Kenya as U.S. Steps in
Asset management firms BlackRock and Bitwise are still pursuing Bitcoin ETF approval. Read more:
BlackRock Files Second Bitcoin ETF Amendment To SEC
