The National Assembly Committee in Kenya has given its endorsement to the Capital Markets (Amendment) Bill, which aims to regulate and tax the digital currency market in the country. The bill, sponsored by Mosop MP Abraham Kirwa, has been approved by the committee and is now one step closer to becoming law.
The proposed legislation seeks to increase oversight of the digital currency industry, which currently operates with minimal regulation. It introduces amendments to the Capital Markets Act to classify digital currencies as securities and proposes unique taxation models, including taxing crypto exchanges, digital wallets, and crypto transactions.
If passed, the bill would require Kenyan crypto traders to pay capital gains taxes on their profits from crypto assets. Traders would also need to report details of their digital currency trading to the Capital Markets Authority, including information on virtual currency amounts held, types of currencies transacted, and dates of acquisition and sale.
Kenya’s move to regulate cryptocurrencies aligns with its proactive stance amid global market volatility. The country has been recognized for its leading position in cryptocurrency ownership across Africa. The legislation aims to counter financial crimes associated with the anonymous nature of crypto transactions and considers the environmental impact of digital currency generation and crypto mining.
If the bill is passed, it is expected to bring clarity and security to traders and investors in Kenya. It also positions Kenya as a front-runner in Africa’s adoption of digital currencies, following the lead of countries like South Africa and Nigeria. The impact of the bill on the crypto landscape and the broader economy will be closely monitored as it progresses through the legislative process.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Africa |
| Countries | 🇰🇪 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Abraham Kirwa, Kimani Kuria |
| Companies | United Nations, Capital Markets Authority, National Assembly, Finance and National Planning Committee, Kenya Revenue Authority |
| Currencies | None |
| Securities | None |
