Kenyan Authorities have asked its citizens to participate in shaping the country’s policy toward cryptocurrencies and blockchain technology.
The Financial Reporting Centre (FRC), on August 16, 2023, announced that all Kenyans are invited to participate in a public survey on virtual assets and virtual assets service providers. The FRC, a statutory body established under Kenya’s anti-money laundering law, stated the anonymous feedback would help the authorities better understand the country’s crypto ecosystem.
In its statement, the FRC acknowledged the rapid growth of the crypto sector in the country. The agency noted that though the sector has the potential “to spur financial innovations and efficiency,” it also “present opportunities for illicit activities like money laundering and terrorism financing.”
The FRC and other stakeholders are undertaking a survey to identify, assess and understand the ML/TF risks emerging from Virtual Asset (VA) activities in Kenya, i.e. Crypto and other digital assets.
We invite views from the public through https://t.co/BIVGaPAWG5 by 8th Sep 2023. pic.twitter.com/aYFhQ8ko3E— Financial Reporting Centre Kenya (@FRC_Kenya) August 16, 2023
Therefore, in a bid to protect both the consumers and the financial system in Kenya, the FRC noted that it is seeking input from the public on their perception of the industry. The agency emphasized:
“Your feedback will play a vital role in shaping the future of the virtual assets ecosystem and promoting a safer and more transparent financial system.”
Kenyans are expected to fill out the survey by September 8, 2023. According to the FRC, Interested individuals can share their thoughts via the six-page form on its website.
The initiative comes as no surprise considering a 2022 report revealed that Kenya has the highest number of crypto owners in Africa, with over 4 million citizens holding at least one crypto token. The survey’s timing also aligns with the country’s proactive stance on cryptocurrency regulations.
In 2022, Kenyan legislators introduced amendments targeting cryptocurrency ownership and management. These amendments required crypto owners to provide transaction and activity details for tax purposes and introduced safeguards for consumers against broker or exchange failures.
Furthermore, Kenya introduced a cryptocurrency tax regime in May 2023 to enhance transparency and revenue collection. The proposed plan entails a 3% tax on digital asset transfers or exchanges, while content creators operating in the digital space will see their withholding income tax on online earnings rise from 5% to 15%.
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