Kenya Intends To Apply Tax For Cryptocurrency Traders

According to Business Daily Africa, on November 21, if parliament approves The Capital Markets Bill, the government of Kenya will set up an income tax system for cryptocurrency traders.

Kenya is the most recent nation to signal its intention to regulate the cryptocurrency market, focusing on taxing digital currency transactions as the sector grows. Mosop MP Abraham Kirwa sponsored the bill:

“Where the digital currency is held for a period not exceeding twelve months, the laws relating to income tax shall apply or for a period exceeding twelve months, the laws relating to capital gains tax shall apply.”

When the specific assets are either sold or used in a transaction, the proposed law aims to impose capital gains for the increased market value of the cryptocurrencies.

Cryptocurrency owners are required to provide information for tax purposes to the nation’s regulator, the Capital Markets Authority (CMA). The dates on which the cryptocurrency was purchased and the asset was sold are among the details that must be disclosed.

“A person who trades in digital currencies shall keep records of digital currency transactions, including purchases and sales, pay taxes on any gains that are made from transactions in digital currencies in accordance with the applicable laws,” the Bill states.

The Kenyan government intends to make banks deduct a 20% excise duty from all commissions and fees associated with the exchange of digital assets.

Currently, Kenya’s crypto market is largely unregulated, and according to a previous government report, at least four million investors have lost money as a result of the current bear market. The Central Bank of Kenya (CBK) issued a warning to Kenyans in this case against investing in digital assets like Bitcoin.

The country will formally regulate cryptocurrencies for the first time if the bill is passed into law, marking the mainstreaming of the industry.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

Coincu News