The Kenyan parliament is allegedly set to review a bill which seeks to bring blockchain and crypto assets under the purview of the Capital Markets Authority. The The proposed law also attempts to widen the definition of ‘securities’ to include digital currencies. Additionally, the regulator requires all licensees to keep records of digital currency transactions and pay taxes on any profits.
Law Proposes To Broaden Definition Of Securities
According To Amboko Julians?, a Kenyan economist and blogger, the East African nation’s legislative body is preparing to discuss a bill that would place blockchain technology and digital currencies under the supervision of Kenya’s Capital Markets Authority (CMA). Julians In addition, Julians It was said that the bill also intends to “enlarge the definition of ‘securities’ to encompass digital currencies.”
In His March 28 Twitter thread, Julians posted screenshots of the bill sponsored by Kenyan Legislator Abraham Kipsang Kirwa. The screenshots of the bill are available. Kirwa’s bill states that those seeking to introduce a cryptocurrency must first acquire a license from the capital markets regulator.
“A person who intends to introduce a new cryptocurrency product shall make an application to the Authority in the prescribed form for a licence,” Read the alleged bill.
Disclosure Of Crypto Activity
The Bill adds that the applicant will have to show to regulators that the cryptocurrency in question has gone through a product development period of at least two years and was tested on a customer base of no less than ten thousand. Moreover, Kenyan residents who have been granted digital currency trading licenses must register with the CMA. Furthermore, they must keep records of any digital currency transactions and pay taxes on any profits.
Meanwhile, the bill proposes that anyone who is not in compliance with the law, anyone who holds or trades in digital currencies must declare the amount and when it was acquired. If the bill is approved by the Kenyan Parliament: those trading in digital currency will need to apply for a CMA license within six months.
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