Tax Shock in a Country with Millions of Cryptocurrency Users!

Lawmakers in Kenya are currently cryptocurrencies It decides whether to take action on a law that would allow it to be taxed.

The “Capital Markets Amendment Bill 2022” will allow taxation of crypto exchanges, digital wallets and transactions. Crypto investors in Kenya will have to pay capital gains tax to the Kenya Revenue Service whenever they sell or use their crypto in a transaction.

Authorities In Kenya To Tax The Cryptocurrency Industry

In the country, which is home to at least four million cryptocurrency investors, the government plans for banks to withhold a 20% excise tax from all commissions and fees charged on digital asset transactions.

The bill will also require investors to notify the Capital Markets Authority, the government’s financial regulator, about the details of their crypto holdings.

The bill states that “If the digital currency is held for a period not exceeding twelve months, the laws on income tax will apply, and if the digital currency is held for a period of more than twelve months, the laws on capital gains tax will apply”.

According to a report by the United Nations, about 8.5% of Kenya’s population, or 4.25 million people in the country. bitcoin and cryptocurrencies. This 8.5% rate ranks fifth in the world, while the US ranks sixth with 8.3% of the population.

“The amendment will provide specific provisions to govern digital currency transactions in Kenya, including the definition of digital currencies, their generation through cryptocurrency mining, and regulations regarding the buying and selling of digital currencies,” said Abraham Kirwa, MP for Mosop, the architect of the bill.

*Not investment advice.