Kenya is taking steps to enforce taxation of cryptocurrency usage in the country. Estimations suggest that over 4 million locals are actively or passively engaging with digital assets and the officials are making an effort to draw revenue from high profile crypto exchanges. Kenya Revenue Authority set the digital tax rate to 1.5% at the beginning of 2021, expecting to gain around $45.5 million in a combined result. As value added tax regulations are now in effect, the government is able to target cryptocurrency exchanges on a global scale. Furthermore, despite Central Bank of Kenya warnings, many Kenyans have been regularly dealing with digital assets such as Bitcoin. This has motivated the regime to find a way to levy taxes on crypto trades. At the time of writing this, Nigeria and South Africa have been in similar situations related to their regulations and taxation methods. Therefore, Kenya is joining the ranks of these two countries in order to capitalize on cryptocurrency activities.



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