May 29, 2024
Kenyan Parliamentary Committee Advances Crypto Tax Bill for Approval
Latest Cryptocurrency News

Kenyan Parliamentary Committee Advances Crypto Tax Bill for Approval

A significant development in Kenya’s regulatory landscape has occurred as a bill categorizing crypto assets as securities and imposing capital gains tax on them has successfully passed through a parliamentary committee. The Capital Markets (Amendment) Bill, 2023, has gained approval from the National Assembly’s Finance and National Planning Committee, marking a crucial step in its legislative journey. The committee’s Chairman, Kimani Kuria said,

“This is a very critical law that will guard our country against proceeds of crime and terrorism financing. Cryptocurrencies are already being traded by millions of Kenyans yet we have no law to govern it. We approve this Bill for publication.” 

With the committee’s endorsement, the bill is set to progress to the reading stage in the National Assembly, the lower chamber of the Kenyan Parliament. The proposed legislation introduces amendments to the country’s tax code, establishing a tax framework for crypto assets held on exchanges and digital wallets. Kenyan citizens would be subject to capital gains tax based on the increased market value of cryptocurrencies when sold or used in transactions. While the full text of the bill is not available, the Business Daily reports that banks would be required to deduct a 20 percent excise duty on all commissions and fees associated with crypto transactions.

If the bill successfully passes into law, Kenyan citizens will be obligated to declare all their crypto assets and their corresponding values in Kenyan shillings to the Kenya Revenue Authority. The bill outlines specific information that individuals dealing in digital currency must provide for tax purposes, including the transaction’s proceeds, related costs, and any gains or losses incurred.

This legislative move aligns with global trends, as countries increasingly address the taxation and regulation of cryptocurrencies. While Kenya is still in the process of introducing its crypto tax framework, other nations have been actively pursuing measures to ensure accurate reporting and compliance. Notably, tax authorities in various countries, such as the United Kingdom, have expressed a heightened focus on pursuing individuals who may have failed to accurately declare their crypto holdings in recent years.

Image by rawpixel.com on Freepik

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