A Name That Wants Crypto Taxation is a Kenyan Lawmaker

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A name that wants crypto taxation is a Kenyan Lawmaker. According to the capital market tax reform bill, approved by Kenyan lawmaker Abraham Kirwa, users of cryptocurrencies in the country will be forced to pay tax on their profits. In addition, the bill (if passed) will require crypto holders to provide Kenyan capital market regulators with details such as “business income, any debt related to business and the amount of any profit or loss on the transaction.”

Kenyan Lawmaker Warns about Sharing Crypto Transaction Details with Admin

Under a Capital Markets Amendment Bill reported to be going to the Kenyan parliament, people who hold cryptocurrencies may in the future be required to pay taxes corresponding to the profits made, according to a report. Kenyans holding cryptocurrencies for more than 12 months will need to pay income tax while those for less than a year will have to pay income tax.

Apart from Kenyan cryptocurrency users, the amendment bill also seeks to introduce a tax targeting cryptocurrency exchanges and digital wallets. According to Business Daily, Abraham Kirwa, Member of Parliament (MP) for Mosop Constituency supports the Amendment Bill.

In addition to taxation, the bill proposes that people holding digital assets must share details about how and when crypto is acquired with Kenya’s Capital Markets Authority (CMA). “A person who owns or trades in digital currency must provide the following information to the owners of the company for tax purposes: the amount of money received from the transaction, all costs related to the transaction, and the amount of the profit it any or all losses in the business. ,” the amendment said.

Responsibilities of People Dealing with Cryptography

Meanwhile, Kirwa is quoted in the report as saying that his bill seeks to “make specific provisions to regulate digital currency transactions in Kenya”. The bill also proposes what the MP describes as “the duties of people or companies that do business in digital currency, [provide] for its tax, its rights and [provide] for [promote] innovation in this area.”

As previously reported by Bitcoin.com, Kenya has one of the highest number of cryptocurrency holders in Africa and is one of the largest crypto markets on the continent. Despite this acceptance of crypto by Kenyans, the authorities in the country, including the Governor of the Central Bank of Kenya, Patrick Njoroge, have repeatedly criticized the use of digital currency offered by the people.

However, the Kenyan lawmaker seems to agree that warnings from Njoroge and others have not deterred Kenyans from using or holding cryptocurrencies. Therefore, in addition to the above-mentioned measures, the bill also requires those who deal with cryptos to keep and share records of all activities related to digital currency transactions.

“A buyer of digital currency shall keep records of digital currency transactions, including purchases and sales, [and] pay taxes on the profits he has received from digital currency transactions in accordance with the law,” according to the legal service.

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