Kenya Taxes Crypto Transactions
Kenya is the latest country to introduce legislation aimed at regulating the crypto industry with the expectation of taxation for digital currency transactions.
referreportfrom Business Daily Africa On November 21, 2022, the government prepared a draft Capital Markets Act (amendment) to tax crypto trading.
“In the event that cryptocurrencies are held for less than twelve months, the laws relating to income tax shall be taken into account. If it is more than twelve months, the law relating to capital gains tax shall be taken into account.”
The bill wants to apply to the profits generated by the higher crypto market value if crypto is sold or consumed.
Commercial Banks Deduct Crypto Transaction Fees
The government also plans to let commercial banks deduct 20% of fees for digital asset transactions.
In addition, crypto holders are required to notify the Capital Markets Authority (CMA) government financial agency and must show how the crypto was acquired and the date the crypto was sold.
In Kenya crypto is not yet regulated by law. The slump in the crypto market has left more than 4 million Kenyan investors at risk, forcing the Central Bank of Kenya to warn investors against Bitcoin investments.
According to the Finbold report, Kenya seems to be under pressure to hold Bitcoin as a national reserve.