Kenya’s bill seeking to put blockchain and crypto assets under the purview of the Kenyan Capital Markets Authority will be debated in the country’s parliament. The bill also seeks to “widen the meaning of ‘securities’ to capture digital currencies.” The persons that receive licenses from the regulator are also required to maintain records of all digital currency transactions and to pay taxes on any gains made.
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The bill introduced by Abraham Kipsang Kirwa seeks to bring blockchain, crypto, and digital currencies under the jurisdiction of Kenya’s Capital Markets Authority (CMA), the regulatory body that grants companies and enterprises permission to operate in Kenya’s capital markets.
It should be noted that a country’s capital markets typically include the stock market, the bond market, and the currency and foreign exchange (forex) markets.
The bill’s utilization of the terms cryptocurrency, digital currency, and virtual currency interchangeably are one of the bill’s pressing issues.
Section 2 of the Act would be amended to include blockchain, cryptocurrency, crypto miner/mining, and digital currency meanings. It also recommends broadening the definition of “security” to include digital currencies.
The bill goes on to state that before a cryptocurrency can be released into the market, the Capital Markets Authority must be satisfied.
Also Read: Kenya Moves To Legalise Crypto.
Subjected to at least two years of product development. The product development has at least 10,000 customers.
Furthermore, the bill states that anyone who is granted a license to trade digital currencies must, become a member of the Capital Markets Authority.
Keep track of all your digital currency transactions. Pay taxes on any profits made from the transactions.
Even so, when it comes to taxing cryptocurrencies, the proposes that income tax applies if a digital currency is held for 12 months. Capital gains tax applies if it is held for more than 12 months