{"id":20385,"date":"2023-04-29T10:55:08","date_gmt":"2023-04-29T10:55:08","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/kenya-to-start-levying-tax-on-revenue-earned-by-crypto-exchanges-bitcoin-news\/"},"modified":"2023-04-29T10:55:08","modified_gmt":"2023-04-29T10:55:08","slug":"kenya-to-start-levying-tax-on-revenue-earned-by-crypto-exchanges-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/kenya-to-start-levying-tax-on-revenue-earned-by-crypto-exchanges-bitcoin-news\/","title":{"rendered":"Kenya to Start Levying Tax on Revenue Earned by Crypto Exchanges \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to regulations published by the country\u2019s treasury secretary, global crypto exchanges used by Kenya\u2019s estimated 4 million users will start paying a 1.5% tax on revenues earned. <\/strong><\/p>\n

Tax-Avoiding Digital Asset Platforms<\/h2>\n

The Kenyan Treasury has said it will start levying taxes on revenues earned by cryptocurrency exchanges used by an estimated 4 million local residents. According to a report<\/a> by Business Daily Africa, Kenyan authorities will rely on the 1.5% digital tax service that became effective on Jan.1, 2021.<\/p>\n

Initially proposed in 2020, the digital tax is the Kenyan government\u2019s attempt to extract revenue from leading crypto exchanges and tax-avoiding digital asset platforms. As reported<\/a> by Bitcoin.com News in early January 2021, the Kenya Revenue Authority (KRA) said it expected to get $45.5 million (5 billion Kenyan shillings) from the tax.<\/p>\n

Meanwhile, as shown in the 2023 regulations\u2019 value added tax (electronic, internet and digital marketplace supply) published by Treasury Cabinet Secretary Njuguna Ndung\u2019u, Kenya can now target global crypto exchanges.<\/p>\n

\u201cFor the purposes of these Regulations, a taxable electronic, Internet or digital marketplace supply include\u2026facilitation of online payment for, exchange or transfer of digital assets excluding services exempted under the Act,\u201d the published regulations state.<\/p>\n

Alongside Nigeria and South Africa, Kenya has one of Africa\u2019s highest<\/a> proportions of the population owning crypto. However, like its peers on the continent, Kenya has not recognized cryptocurrencies. The Central Bank of Kenya (CBK) and its governor have warned<\/a> residents against dealing with crypto assets like bitcoin.<\/p>\n

Despite the warnings, Kenyan residents continue to acquire and trade cryptocurrencies and this has prompted the government to seek ways to levy taxes on crypto transactions.<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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