Kenya has become the latest country to show its intention to regulate the cryptocurrency industry, aiming to tax transactions as the cryptocurrency industry expands.
As reported by Business Daily Africa, if parliament passes the Capital Markets Bill, the government will impose an income tax on crypto investors.
Kenya Wants to Introduce Taxes on Cryptocurrency Transactions
Kenya’s new crypto money bill aims to bring taxation on crypto money transactions. In the proposed bill, the legislation is mentioned as follows:
“Where digital currency is held for a period not exceeding twelve months, income tax laws or capital gains tax laws for a period exceeding twelve months will apply.”
The proposed law also aims to bring capital gains for the increased market value of cryptocurrencies when certain assets are sold or used in a transaction.
In the country, which has at least four million cryptocurrency investors, the government plans to withhold a 20 percent excise tax from all commissions and fees charged by banks for digital asset transactions.
In addition, crypto holders are required to notify the Capital Markets Authority, the country’s regulator, for tax purposes. Some of the information to be shared includes the date the cryptocurrency was acquired and the dates the asset was sold.
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