People who own cryptocurrencies may eventually be obliged to pay taxes in line with the gains made, according to a report on a capital markets amendment law that is purportedly approaching the Kenyan parliament.
Kenyans who hold cryptocurrencies for a duration of more than a year must pay capital gains tax, while those who hold for a shorter duration must pay income tax.
In addition to taxing Kenyan bitcoin owners, the revised law also aims to tax digital wallets and cryptocurrency exchanges.
Quoting a recent report, “Abraham Kirwa, a member of parliament (MP) for the Mosop seat, is the bill’s sponsor.”
The draft suggests taxation as well as requiring owners of digital assets to disclose to Kenya’s Capital Markets Authority information about when and how they got their cryptocurrency (CMA).
The amendment bill reportedly says that “a person who owns or deals in cryptocurrency, shall provide the Authority with the details provided for tax purposes—the number of proceeds from the operation, any transaction-related costs, and the number of gains or losses on the transaction.”
According to a comment from Kirwa in the paper, his legislation aims to “provide for particular measures to oversee digital currency exchanges in Kenya.
Additionally, the measure calls for “responsibilities of individuals or entities transacting in digital currencies, [providing] for its ownership, taxation and [providing] for [the] advancement of technology in this sector.”
As previously reported, Kenya is one of the continent’s largest cryptocurrency markets and has one of the greatest concentrations of bitcoin owners.
The governor of the Central Bank of Kenya, Patrick Njoroge, has repeatedly raged against the usage of privately produced digital currencies despite Kenyans’ enthusiasm for crypto.
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