Latest Kenyan digital tax to affect crypto platforms. Kenya Revenue Authority (KRA) has introduced new rules that allow digital marketplace users to pay digital taxes.
At a rate of 1.5% on gross transaction value, the new tax is expected to take effect on Jan. 1, 2021. According to a report, the KRA will create a special tax unit to track and tax transactions using “data-driven detection.”
The report asserts that cryptocurrency platforms “fall under the digital marketplace designation since they offer a platform for buyers and sellers of crypto through electronic means.”
David Gitonga, Bitcoinke ‘s founder & managing editor, says digital tax would nudge Kenya on cryptocurrencies regulation.
“I think this bill is going to put a spotlight on many digital activities, including crypto trading, and this might open the door to some form of crypto regulation,” said Gitonga.
He continues to explain that “crypto regulation has long been ignored because there is a general lack of understanding of how fast this space is growing in Kenya.”
[image: Yonko Kilasi]