On June 26, Kenyan President William Ruto signed the 2023 Finance Bill, which includes a 3% tax on crypto asset transactions. It is reported by TechCabal.
The authorities believe that this will help stabilize the domestic economy and reduce dependence on foreign loans. According to Bloomberg, the president wants to double state revenues to 5 trillion shillings ($36.7 billion) in 5 years.
The intentions of the Kenyan government to introduce a tax on transactions with cryptocurrencies became known in May. The Blockchain Association of Kenya (BAK) spoke negatively about the new law.
“Taxing all digital assets in one way could stifle innovation and hinder the growth of sectors in an industry,” the organization said.
The BAK added that such taxation may not be fair due to the high volatility of crypto assets.
According to a UN report, Kenya ranks fifth in the world in terms of global cryptocurrency adoption. It is owned by 8.5% of the country’s population.
On June 14, Business Daily Africa published the results of a report according to which 90% of Kenyans oppose the adopted law.
Recall that in May, the authorities of the Swiss canton of Zug raised the minimum threshold for taxes paid in bitcoin and Ethereum to $1.67 million.
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