A bill to define crypto assets as securities and impose capital gains tax on them has made it through a Kenyan parliamentary committee. After this it will be presented in the lower house of Parliament.
According According to Kenyan newspaper Business Daily on December 4, the Capital Markets (Amendment) Bill, 2023 has been approved by the Finance and National Planning Committee of the National Assembly. The report quoted committee chairman Kimani Kuria:
“This is a very important law that will protect our country from the proceeds of crime and terrorism financing. Cryptocurrencies are already traded by millions of Kenyans, yet we have no laws to regulate it. “We approve this bill for publication.”
Following committee approval, the bill will move to the reading stage in the National Assembly, the lower house of Kenya’s parliament.
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The Capital Markets (Amendment) Bill, 2023, amends the country’s tax code, imposing tax on crypto assets stored on crypto exchanges and digital wallets. Within its framework, Kenyans will pay capital gains on the increase in crypto market value when they sell it or use it in transactions. While the text of the bill is not available in full, according to the Business Daily, “The Bank [will] “Reduce 20 percent excise duty on all commissions and fees charged on transactions.”
If the bill is passed, Kenyan citizens will be obliged to declare all their crypto assets and their value in Kenyan shillings to the Kenya Revenue Authority. The report quotes part of the bill:
“A person who holds digital currency or transacts in it must provide the following information to the authority for tax purposes – the amount of income received from the transaction, any costs incurred related to the transaction and any profit or loss made on the transaction Amount.”
While Kenya is only just preparing to implement its crypto taxes, tax services in other countries have been quite vocal recently their desire to pursue All those who did not declare their crypto accurately. For example, Her Majesty’s Revenue and Customs recently demanded from United Kingdom holders of Declare any crypto they failed to report Over the last four, six or even 20 years.
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