A bill that seeks to bring blockchain and crypto assets under the purview of the Kenya Capital Markets Authority is reportedly due to be debated in the country’s parliament. The bill also seeks to “expand the meaning of ‘securities’ to capture digital currencies.” People who receive licenses from the regulator are also required to keep records of all digital currency transactions and pay taxes on any profits made.
Bill proposes expanding the definition of values
According to Amboko Julians, a Kenyan economist and blogger, the East African nation’s parliament is set to debate a bill that proposes to bring blockchain technology and digital currencies under the purview of the Capital Markets Authority (CMA) of Kenya. In addition to seeking to incorporate the definitions of blockchain and cryptocurrency, Julians stated that the bill also proposes to “broaden the meaning of ‘securities’ to capture digital currencies.”
On his Twitter on March 28 thread, Julians shared the alleged screenshots of the bill sponsored by Kenyan lawmaker Abraham Kipsang Kirwa. As shown in the screenshots, Kirwa’s bill proposes that people looking to introduce cryptocurrency must first obtain a license from the capital markets regulator.
“A person who intends to introduce a new cryptocurrency product shall apply to the Authority in the prescribed form to obtain a license,” the statement read. alleged bill.
Disclosure of cryptographic activity
The bill adds that the person making the request will also need to prove to the regulator that the cryptocurrency in question “was subjected to a product development period of not less than two years.” In addition, the regulator will need to be satisfied that the crypto underwent product testing “on a customer base of not less than ten thousand.”
For Kenyan residents who are recipients of digital currency trading licences, the bill says such persons must register with the CMA. They are also required to keep records of all digital currency transactions and pay taxes on the profits made.
Meanwhile, the bill also proposes that anyone in Kenya who owns or trades digital currencies must disclose the amount of crypto they hold, as well as when it was acquired and removed. If the Kenyan parliament passes the bill, people who trade digital currencies will need to apply for a license from the CMA within six months.
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