Kenya, which has highest proportion of crypto-owning Africans now has a new bill amendment proposal – to allow The Kenya Revenue Authority to collect taxes at 20% from Kenyan citizens.
The bill aims to charge crypto transaction fees similar to excise duty on bank transactions.
The bill is called the Capital Markets Amendment Bill, which will allow for crypto taxation on block chain transactions, similar to excise duty on bank transactions.
According to the United Nations Conference on Trade and Development (UNCTA), Kenyan citizens have some of the highest cryptocurrency ownership rates per share of population in the world, even higher than the USA and South Africa.
Source: UNCTAD
Cryptocurrency is thriving in Africa
According to Chainalysis Report, Sub-Saharan Africa is conducting the world’s highest proportion (about 80%) of crypto retail payments of less than $1,000.
The report further highlights that peer-to-peer transactions are much more common in Sub-Saharan Africa than anywhere else globally. Africa occupies about 6% of all crypto transaction volumes, which dwarfs those of Central and Southern Asia.
African Crypto adoption continues to flourish
It seems startups that can facilitate retail, commercial and peer-to-peer transactions have a decent shot at success in Africa. According to Chainalysis, Paxful, a popular peer-to-peer exchange, celebrates remittance user growth rates as high as 55% in Nigeria and 140% in Kenya. Nigeria is currently their largest market.