Is it a legal thing to trade in Crypto?
Why can’t I deposit in a Commercial Bank.
For instance, can I say I earned my wealth trading in cryptocurrency?
Are we supposed to pay any taxes on the gains we receive? Should we put them in our KRA Tax returns?
There is NO Kenyan Law criminalising trading in Crypto. As best as I can tell, it is not illegal.
Why can’t you deposit what in a Commercial Bank? If Cryptos then maybe because they do not have the framework?
Yes if you did then you can say you earned your wealth trading in cryptocurrency, why not?
There is no direct tax on cryptos. So there is no way to determine how it should be taxed. A lot of the answer to that would depend on how you structure you crypto deals. Kenya has a personal income tax. So depending on how you structured your dealings, I’d assume most people who buy cryptos would need to report the profits earned as personal income. But that’s just a broad base speculation on my part. Taxation is highly personalised.
I’m not a tax advisor and this is NOT tax advise.
Just say you do online work ama freelancing, banks might freeze your account wakijua unafanyanga crypto trading, I remember CBK warning them about that, funny enough they allow academic writers wareceive but don’t allow cryptoexchanges to deposit, alafu you can do p2p trading which is free and attracts zero charges or you could just open an account with a foreign bank that allows direct transactions with these cryptoexchanges if you make transactions of more than 1 million regularly.
There’s a 1.5/15% (can’t remember) tax on any form of digital work that came to effect this yr, tax lawyers wanaeza fafanua
This is Kenya. You do business first and ask for forgiveness later. If you do everything by the book hutawahi make progress. Lazima ukuwe kichwa ngumu kwa hizi streets.
Kuwa mjanja, use Kraken to trade, then be doing deposits and withdrawals through Etana. That way the only entity the bank is interfacing with is Etana and there is no way for them to know that you are dealing with crypto.
Exactly. Kuna biashara naanza saa hii which is in a legal gray area. I’ll just go ahead and start, na gava ikileta shida baadaye ndio ntajibu kesi
I guess if you have such a questions you would better apply to legal norms of Kenya in order to find out is it legal to trade cryptocurrencies there. I suppose that it’s probably legal, because Kenya doesn’t have any strict conditions regarding trading activity, so I think you can trade cryptos there. However, you have to find out this information in order not to violate the law, because it might lead to very bad consequences. Cryptos nowadays are prohibited in various countries, that’s why they can be seemed as illegal. Neertheless, I can’t understand why are they prohibited. They bring no harm actually despite the fact that some traders might lose lots of money.
KRA can tax anything you declared, including thievery and lanyeism.