Kenyan parliament to discuss blockchain and crypto assets bill

According to reports, the Kenyan parliament will discuss a bill proposing to include blockchain and encrypted assets within the jurisdiction of the Capital Markets Authority. The bill also proposes to expand the definition of securities to include digital currencies. In addition, individuals who obtain licenses from regulatory agencies are required to keep records of all digital currency transactions and pay taxes on any gains. (Bitcoin.com)

Kenya bill proposes to expand the definition of securities to include encrypted assets

The Kenyan parliament is set to deliberate on a new bill proposing that blockchain technology and crypto assets be regulated by the Capital Markets Authority. This move is aimed at formalizing the use of digital currencies in the country and providing more clarity on their use. The bill also seeks to expand the definition of securities to include digital currencies like Bitcoin, Ethereum, and others.

Introduction

Blockchain technology has become a buzzword in the tech industry, with many people intrigued by its potential to revolutionize various sectors such as finance, healthcare, and logistics, among others. Governments worldwide have been grappling with the regulation of cryptocurrencies and their underlying technology, with some countries embracing it while others have banned its use altogether. In this article, we take a look at the new bill tabled in the Kenyan parliament that proposes the regulation of blockchain technology and crypto assets.

Background

The use of digital currencies in Kenya has grown significantly in recent years, with many people using them for transactions and as a store of value. Bitcoin, the most popular cryptocurrency globally, has also gained significant adoption in the country, with many people opting to transact in it due to its ease of use and the global reach it offers.

Overview of the Bill

The proposed bill seeks to regulate blockchain technology and crypto assets in Kenya, providing much-needed clarity and guidelines for their use. The bill is a comprehensive piece of legislation that covers various aspects of digital currencies, including their issuance, exchange, and storage, among others. One of the most significant changes proposed by the bill is the expansion of the definition of securities to include digital currencies, which will require those dealing in crypto assets to comply with the same rules and regulations as those dealing in securities.

Licensing and Taxes

The bill also proposes that individuals who obtain licenses from regulatory agencies be required to keep records of all digital currency transactions and pay taxes on any gains. This move is aimed at ensuring that crypto assets are treated as any other financial asset and that their use is closely monitored and regulated.

Benefits of Regulation

The proposed regulation of blockchain technology and crypto assets in Kenya has several benefits for both the government and the people. For the government, it provides an opportunity to harness the potential of these technologies while ensuring that they are used in a legal and transparent manner. For the people, it provides more clarity and certainty on the legal status of digital currencies, which can help increase their adoption and use in the country.

Conclusion

The proposed regulation of blockchain technology and crypto assets in Kenya is a significant step towards the formalization of the use of digital currencies in the country. The bill provides much-needed clarity and guidelines on the use of these technologies, which can help increase their adoption and use. It remains to be seen how the debate in parliament will go, but if passed, this bill could pave the way for Kenya to become a hub for blockchain and crypto innovation in Africa.

FAQs:

1. What is the proposed bill in the Kenyan parliament regarding blockchain and crypto assets?
The bill proposes to regulate blockchain technology and crypto assets by expanding the definition of securities to include digital currencies and requiring those dealing in them to comply with the same rules and regulations as those dealing in securities.
2. What are the benefits of regulating blockchain and crypto assets?
Regulating these technologies provides more clarity and certainty on their legal status, which can help increase their adoption and use, and also ensures that they are used in a legal and transparent manner.
3. What are the implications of the proposed bill for those dealing in crypto assets?
Individuals who obtain licenses from regulatory agencies will be required to keep records of all digital currency transactions and pay taxes on any gains. This move is aimed at ensuring that crypto assets are treated as any other financial asset and that their use is closely monitored and regulated.