Jump into crypto Africa and discover the latest Africa crypto news! Kenya crypto bill could see tax changes, Nigeria crypto Seun Kuti has online meltdown.
Compliance with existing laws is crucial for adoption, and Africa is no exception. In Kenya, the Virtual Asset Service Providers (VASP) bill seeks to create a framework for crypto trading where regulated exchanges can access the vibrant market.
However, stakeholders want to review some of the proposals, which are mostly related to Kenya’s treatment of crypto taxes.
Meanwhile, in Nigeria, changes are being made to existing laws to better protect users. One such user is Seun Kuti, who reportedly lost money in a fraudulent crypto scheme before having an outburst against crypto online.
Kenya Crypto News: VASP Needs Urgent Revisions for Crypto Africa
Kenya recently introduced the VASP bill, which will introduce new laws guiding crypto trading.
The idea is to eliminate or completely remove risks associated with money laundering and terrorism financing. VASP will be part of a broader strategy to remove Kenya from the Financial Action Task Force (FATF) grey list.
Being on this list means the country is seen as lax in monitoring and freezing suspect financial transactions, including crypto-related funds.
To spearhead this effort, a technical working group is now tasked with drafting regulations for submission to the cabinet.
Progressive as it may be, stakeholders, including the Virtual Asset Consultative Council (VACC), believe there should be urgent amendments to the taxation model proposed in the bill.
Critics say the Digital Assets Tax (DAT), under Section 12F of the Income Tax Act, does not differentiate between personal investment and business activity. As such, should the VASP bill become law as it stands, long-term holders might be unfairly taxed.
Additionally, there is a lack of clarity on taxable events, including transfers between own wallets. The bill proposes taxing such transfers in a way that is similar to how profitable traders are taxed.
There are further concerns that the bill fails to recognize crypto’s unique nature. Unlike traditional assets, taxing crypto differs and requires existing tax laws to adapt to these new realities, especially regarding valuation and transactions.
Nigeria Crypto News: Artist Blasts Crypto: But African Regulators Are Stepping Up
In Nigeria, musician Seun Kuti took to X, condemning crypto and calling it a scam that exploits the poor. Reportedly, his sister lost over $33,000 in a crypto investment scheme. In a viral video, the artist said, “Crypto is a lie” and unfairly enables the transfer of wealth from the “poor to the rich.”
“Crypto is a fcc*ing lie… My sister lost over 50 million to crypto”
– Seun Kuti pic.twitter.com/4oIgbORKMq
— @𝗼𝗻𝗲𝗷𝗼𝗯𝗹𝗲𝘀𝘀𝗯𝗼𝘆 (@OneJoblessBoy) January 29, 2025
Despite his troubles, Nigeria has been at the forefront, seeking to protect crypto users in the country.
Regulators are also proposing more laws to keep pace with the rapidly changing landscape, in addition to cracking down on exchanges and restricting P2P transactions.
For example, the country’s Securities and Exchange Commission (SEC) recently forwarded regulations that aim to create a structured crypto framework while protecting users and fostering innovation.
EXPLORE: This Week In Crypto Asia: Thai Finance Minister Proposes Unified Licensing For Securities And Crypto Trading
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