Kenyan legislators have initiated steps to implement cryptocurrency regulation. Yesterday, November 21st, the Capitals Law was amended. The amendments require cryptocurrency owners to provide information about transactions and activities for tax collection purposes. This development was disclosed in a blog post by Business Daily Africa.
The bill will protect consumers from financial losses in the case of broker or exchange failures. The Kenyan crypto community was affected by the FTX liquidity crunch; the authorities announced the creation of a consumer protection fund to mitigate damage and prevent a recurrence. Banks will be given the authority to deduct a 20% fee from all digital asset transactions. The law aims to make capital gains when the value of assets increases.
The bill sponsor, Mosop MP Abraham Kirwa, commented:
“The amendment will provide for specific provisions to govern digital currency transactions in Kenya, including the definition of digital currencies, its creation through crypto mining, and provide for regulations around trading of digital currencies. The amendment will also outline responsibilities of persons and businesses trading in digital currencies for its taxation, ownership and provide for promotion of innovation in this area.”
The Governor of the Central Bank of Kenya has also explored the possibility of creating a Central Bank Digital Currency (CBDC) and making Bitcoin its reserve currency.
Kenya Blockchain’s community partnered with the Near Foundation to fund projects such as Kilimo Shwari that would benefit the local industry. There are also meetups for citizens to learn more about Web3 and its underlying technologies.
According to statistics, more than 4 million Kenyans own cryptocurrency, accounting for slightly more than 8% of the country’s population. If the bill is passed, Kenya will become the latest country to regulate cryptocurrency.
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