Bitget App
Trade smarter
Kenya Shifts Crypto Tax Policy Toward Platform Fees Under New Law

Kenya Shifts Crypto Tax Policy Toward Platform Fees Under New Law

CryptonewslandCryptonewsland2025/11/03 14:27
By:by Wesley Munene
  • Kenya’s Finance Act 2025 replaces the Digital Asset Tax with excise duty on crypto platform service fees.
  • The VASP Act mandates registration, KYC compliance, and Kenyan board representation for all crypto firms.
  • Coordination between the CBK and CMA will guide implementation as Kenya strengthens regulation of its crypto sector.

Kenya has introduced a major change to its cryptocurrency taxation system, replacing the Digital Asset Tax with an excise duty on platform fees. The reform, part of the Finance Act 2025, aims to align the country’s approach to digital asset taxation with international standards. The adjustment follows the enforcement of the Virtual Asset Service Providers (VASP) Act, which formalizes how crypto businesses operate under the Central Bank of Kenya’s oversight.

New Tax Model Targets Service Fees

Under the new framework, a local report confirms that licensed crypto exchanges and brokers will pay excise duty on fees and commissions charged to users. The earlier system, which imposed a three percent tax on the total transaction value, has been repealed. Officials say the shift better reflects how digital asset platforms earn revenue. 

The Kenya Revenue Authority (KRA) worked with industry representatives to refine the model, ensuring a system based on service charges rather than asset value. Industry participants have expressed support for the revised policy. GoChapaa’s Chief Marketing Officer, Philip Chege, said the move resolves long-standing concerns about fairness and practicality in crypto taxation. 

He confirmed that digital asset companies engaged in discussions with the KRA and legal experts during the drafting process. Chege stated that dialogue between regulators and stakeholders created a cooperative environment for shaping the new structure .

VASP Act Enforces Regulatory Standards

The VASP Act, which took effect this year, requires all virtual asset platforms to register with the Central Bank of Kenya. Registered entities must maintain physical offices, implement Know Your Customer (KYC) procedures, and include Kenyan nationals on their boards. The law also enforces anti-money laundering and counter-terrorism financing standards consistent with the Financial Action Task Force guidelines. 

These measures establish Kenya’s framework for accountability in the digital asset sector. Implementation of the tax and registration measures will depend on coordination between the Central Bank of Kenya and the Capital Markets Authority.  The two agencies are going to take care of the licensing, compliance, and reporting processes for the service providers. The analysts believe that the organized method will not only make supervision more formal but also ensure that the right amount of tax is collected from the rapidly evolving crypto market. 
As per the data from Chainalysis , Kenya is the third-largest country in Africa in terms of overall cryptocurrency usage and the first in peer-to-peer trading volumes. Now that the taxation and licensing frameworks are clearly defined, the government is planning to make the digital finance sector more compliant and transparent without slowing down its growth.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

You may also like

Bitcoin Updates Today: Bitcoin-Backed Borrowing: Companies Reduce Debts Yet Confront Unpredictable Price Swings

- Sequans Communications sold 970 BTC ($94.5M) to cut debt, reducing liabilities by 50% and lowering its debt-to-NAV ratio to 39%. - Hong Kong firms like Meitu are increasingly using Bitcoin as a strategic reserve amid relaxed crypto regulations and global competition. - Despite the sale, Sequans' stock fell 82% YTD, highlighting market skepticism toward Bitcoin-focused equities amid price volatility. - The move underscores risks of Bitcoin treasury strategies, with Sequans' $2.4B market cap trading below

Bitget-RWA2025/11/04 16:52
Bitcoin Updates Today: Bitcoin-Backed Borrowing: Companies Reduce Debts Yet Confront Unpredictable Price Swings

U.S. imposes sanctions on cryptocurrency network to cut off funding for North Korea's nuclear program

- U.S. Treasury sanctions 8 North Koreans and 2 banks for laundering $3B+ in stolen crypto to fund nuclear programs. - Targets include hackers using AI, malware, and Chinese intermediaries to bypass sanctions via First/Ryujong Credit Banks. - Measures aim to disrupt Pyongyang's cybercrime ecosystem by penalizing third-party enablers like KMCTC's IT worker networks. - Despite actions, China/Russia oppose stricter sanctions, and UN consensus on coal/iron smuggling remains elusive.

Bitget-RWA2025/11/04 16:52
U.S. imposes sanctions on cryptocurrency network to cut off funding for North Korea's nuclear program

Bitcoin Updates: Japan Implements Bitcoin Mining as a Digital Solution to Balance and Stabilize Power Grids

- Japan launches first state-connected Bitcoin mining project via Canaan's 4.5MW hydro-cooled servers to stabilize energy grids using surplus renewables. - Canaan's "digital load balancers" dynamically adjust hashrate to absorb excess solar/wind energy, aligning with Japan's renewable goals and reducing waste. - Government-backed initiative joins 10 other nations monetizing surplus electricity through mining, supported by regulatory reforms reclassifying crypto as financial assets. - Project builds on TEPC

Bitget-RWA2025/11/04 16:52
Bitcoin Updates: Japan Implements Bitcoin Mining as a Digital Solution to Balance and Stabilize Power Grids

Defense Claims Judicial Partiality, Argues Solvency Proof Was Omitted in SBF Appeal

- Sam Bankman-Fried appeals 25-year sentence, alleging judicial bias and procedural errors in his FTX fraud trial. - Defense claims excluded solvency evidence and forced pre-trial testimony previews gave prosecutors unfair advantages. - Parents seek Trump pardon while prosecutors argue SBF's actions caused $11B in losses and triggered FTX's collapse. - Appeal outcome could reshape crypto sector's regulatory landscape amid ongoing reputational crisis.

Bitget-RWA2025/11/04 16:52
Defense Claims Judicial Partiality, Argues Solvency Proof Was Omitted in SBF Appeal