Kenyan Parliamentary Committee Passes Crypto Tax Bill

National Assembly Committee’s Endorsement

The National Assembly’s Finance and National Planning Committee in Kenya has given its nod to the Capital Markets (Amendment) Bill, 2023, aimed at regulating and taxing the burgeoning digital currency market in the country. Sponsored by Mosop MP Abraham Kirwa, the bill has now moved one step closer to becoming law.

According to a local report, Committee Chairman Kimani Kuria emphasized the significance of the bill in safeguarding the nation against illicit activities, saying,

“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 committee approval secured, the bill is set to progress to the reading stage in the National Assembly, the lower chamber of the Parliament of Kenya.

Proposed Amendments and Taxation Models

The proposed legislation intends to increase oversight of an industry that operates with minimal regulation. To accomplish this, it introduces an amendment to the Capital Markets Act, Cap 485, to classify digital currencies as securities. It also proposes unique taxation models, including taxing crypto exchanges, digital wallets, and crypto transactions.

The amendment requires Kenyan crypto traders to pay capital gains taxes to the Kenya Revenue Authority (KRA) when their crypto assets earn profits on market value during a sale or transactional use. Furthermore, traders involved in digital currency transactions would need to report all details of their digital currency trading to the Capital Markets Authority (CMA), covering information like virtual currency amounts held, types of currencies transacted, and dates of acquisition and sale.

Kenya’s Proactive Regulatory Stance

Kenya’s move to regulate cryptocurrencies aligns with a proactive stance amid global market volatility. A 2022 United Nations report highlighted Go to Source to See Full Article
Author: Amara Khatri

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