Kenya Imposes 1.5% Tax Rate on All Crypto Service Providers 0 234

Kenya Imposes 1.5% Tax Rate on All Crypto Service Providers

One of the crowning achievements of the cryptocurrency industry is the adoption of these digital assets in Africa. It began in 2019 as a shaky trend but hasn’t stopped since then, as more and more countries in Africa have embraced these digital currencies. Due to this growth in adoption, there have been calls for better regulation of the industry. Consequently, the Kenyan government is working on introducing a tax initiative. The KRA (Kenya Revenue Authority) announced in August that they had come up with new regulations of ‘digital marketplaces’, which would also comprise of clearer tax rates that are operating in the crypto industry. 

At that time, Bitcoin, a local news source, reported that a tax rate of 1.5% was included in the rules, which would be applicable on gross transaction value. Plus, it will be applied to exchanges and other companies. However, the rules provided came off as quite vague. It wasn’t very different from what the United States’ Internal Revenue Service (IRS) had done last October with Travel Rules. The definition of key terms was quite vague, which made it confusing to determine if industry players would also have to pay taxes. 

A tax expert at the KRA, Nixon Omondi provided some clarity by confirming that the tax rate would be applicable to all Bitcoin service providers in Kenya. Omondi said that crypto classified as a digital asset and according to the law, any company offering a digital service would have to pay tax. According to him, the tax rate would be applicable on both foreign and local entities. However, it will be possible for local companies to claim their taxes at the end of the year because they will have to pay other taxes as well, in accordance with the tax laws in Kenya. 

On the other hand, foreign companies will have no choice, but to remit their taxes on a monthly basis. This is just one of the African countries that have made waves in terms of crypto adoption. It is ranked top in Africa in regard to crypto adoption, but according to the Crypto Adoption Index of 2020 by Chainalysis, it holds the fifth spot. However, it should be noted that this country is not the only one that has made progress when it comes to the crypto regulatory space in the continent. Another country is Nigeria, which recently made some developments concerning regulation. 

This is because cryptocurrencies were finally recognized as digital assets by its securities regulator. An official document was published by the Nigerian Securities and Exchange Commission last month, where it recognized the widespread use of crypto in the country. It acknowledged that some oversight was required because most people were using them for investment purposes. It also said that all companies would be required to register and get approval before they would be able to offer digital assets. Furthermore, they also said that regular cryptocurrencies and utility tokens would be classified as commodities in the country and assumed responsibility.

Previous ArticleNext Article

Leave a Reply

Your email address will not be published. Required fields are marked *

Mila Kunis Sold NFTs of Her Animated Series “Stoner Cats”, Sales Collect Over $8 Million 0 5

Mila Kunis, an American producer, and actress has successfully sold her NFTs for millions of dollars. The NFTs comprise teaser of the upcoming animated series of Kunis namely “Stoner Cats”. Only the purchasers of Stoner Cats NFTs will exclusively enjoy the privilege of watching the series, which is currently in the final phase of its completion at Orchard Farm Productions.

The global crypto community nowadays is going gaga about the Non-Fungible Tokens (NFTs) created by Mila Kunis.

Kunis is an acclaimed producer and appeared in various roles in the movies as a lead actress. Her most admired lead role was played by the actress-cum-producer in the movie titled “Black Swan”. She is married to co-star, Ashton Kutcher and both, individually and collectively, own multiple businesses. One of the businesses that Kunis runs is the production house called “Orchard Farm Productions”.

One of the latest upcoming projects of Kunis’s production house is a fully entertaining animated series called the “Stoner Cats”. The series has been co-created by Kunis along with her husband, Kutcher. Prior to the completion of the upcoming project, and before its onscreen playing, Kunis decided to issue a teaser in the most unique fashion. She eventually decided to launch the teaser by containing it in the Non-Fungible Tokens (NFTs).

It was reported that celebrities such as Seth MacFarlane, Chris Rock, and Jane Fonda are playing roles in the Stoner Cats series. Apart from the actors, even a role has been assigned to Vitalik Buterin i.e. the co-founder of Ethereum. It was told that Buterin was playing the role of a character in the series as “Lord Catsington”.

As regards the storyline of the series, it was told that the story revolves around a woman named “Ms. Stoner” who is suffering from Alzheimer’s. Ms. Stoner happens to have various cats living in her house and she is very fond of them. However, to keep her health in order, Ms. Stoner starts taking medicines made up of marijuana. Somehow the cats living in her house were accidentally exposed to marijuana smoke which led them to talk like insane.

A 27-seconds long video clip of the upcoming series has been made available on the website of Stoner Cats. The video gives a glimpse of the story to the viewers. However, the full video content in the series would not be available to view by everyone. In fact, only those will be allowed to watch the full content who have purchased the NFTs.

Reportedly, Kunis has managed to sell approximately 10,000 NFTs of the upcoming Stoner Cats series. Surprisingly, all the 10K NFTs were sold in only 35 minutes since the initiation of the sales. Each NFT was sold against 0.35 ETH i.e. equivalent to US$ 800/- each. It was informed that the total sale of NFTs collected sale proceeds to the tune of US$ 8.4 Million approximately.

Chris Larsen Ripple Chairman Shows Concern over Dogecoin and Issues Warning to Holders 0 10

Larson now joins the list of some of the world’s most renowned crypto scholars who have revealed their concerns about Dogecoin and told investors to think twice about over-investing in Dogecoin. Ripple Chairman informed investors about the risks associated with investing in Dogecoin. He compared it to gambling and said that most people who gamble end up on the losing side.

Since the Wall Street Bets movement broke out earlier this year, several prominent figures in the encryption field, including Charles Hoskinson and Barry Silbert, have issued similar warnings. However, as of this writing, Dogecoin remains the world’s top-10 cryptocurrency. Although people are now trying to ignore Elon Musk, Larson pointed out that a large part of Dogecoin’s success is due to the head of Tesla. But when he “ditched” Bitcoin, Larson thought he could abandon Dogecoin too.

During his critique, Larson also opened up about Dogecoin’s supply overflow and currency algorithm. He said that company’s algorithm is not environmentally friendly at all. He also questioned the overall mechanism by saying that it is far away from the market’s required quality.

To invest in some sort of memes-oriented company and Musk is nothing short of gambling. Seasoned and mature investors would never likely go for this option it’s rigidly off the cards. Investing in Dogecoin while eying the moon or space is nothing less than nonsense.  Despite the fact that Dogecoin was down to 74% three months ago. But since then, Dogecoin has remained stable and now its price is stable at a flat rate.

However, over the past week the currency being trade tightly between $0.19098 – $0.22888. In the past ten weeks, its momentum has been firmly entrenched in the lower half of the RSI chart. It seems that RSI is beginning to bend downward again. Even though it’s a massive ask for Dogecoin to rise above $1 mark in the coming three to four months but still investors are getting advantage of the low-price range and pilling up Dogecoin in their digital assets’ platform. The active hunters of Dogecoin do have their perspective of long-term investment, as some of the crypto scholars have labeled Dogecoin as a future long-term investment.

Despite facing staunch criticism from the critic’s Dogecoin is among the top 10 digital currencies. Traders have divided points of view about the funny nature of Dogecoins as currency is often mentioned as memes powered one. Those who showed their support for Dogecoin argued that despite the funny nature of the currency, Dogecoin has outperformed some of the renowned cryptocurrencies in terms of performance.  The unnecessary criticism could be a sign of danger or self-obsession towards Dogecoin.

 

Editor Picks

Ready To Invest in Bitcoin? - Top 4 Bitcoin Trading Brokers‎ Read More
Skip to content