Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
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 The earlier system, which imposed a three percent tax on the total transaction value, has been repealed.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.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

XRP News Today: Ripple’s RLUSD: Accelerating Relief Efforts and Strengthening International Financial Systems

- Ripple's RLUSD stablecoin partners with humanitarian groups to enable fast, transparent cross-border aid via blockchain, bypassing traditional banking systems. - RLUSD's market cap surged to $900M as institutions adopt its regulatory-friendly tools, with Ripple acquiring Hidden Road to expand institutional finance integration. - Tembo e-LV and UBRI's $1.5M education investment highlight RLUSD's emerging market adoption, while Brazil/Mexico use Ripple tech to modernize remittances and combat inflation. -

Bitget-RWA2025/11/03 20:30
XRP News Today: Ripple’s RLUSD: Accelerating Relief Efforts and Strengthening International Financial Systems

XRP News Today: "Ripple's XRP and RLUSD Present New Obstacles to SWIFT's Traditional Role in International Finance"

- Ripple launches U.S. institutional OTC platform for XRP and RLUSD, integrating crypto with traditional derivatives and swaps via Ripple Prime. - RLUSD, Ripple's USD-pegged stablecoin, exceeds $1B market cap on Ethereum/XRP Ledger, driven by NY-charter compliance and dual-chain utility. - Post-SEC resolution, Ripple expands institutional adoption through $3T+ transaction infrastructure, targeting Fortune 500 clients and $10T crypto custody by 2030. - XRP's $170B market cap and RLUSD's growth position Ripp

Bitget-RWA2025/11/03 20:30
XRP News Today: "Ripple's XRP and RLUSD Present New Obstacles to SWIFT's Traditional Role in International Finance"

DeFi's Security Challenges Confront Hong Kong's Efforts to Regulate for International Liquidity

- DeFi protocol Balancer lost $128.6M via a V2 pool exploit, triggering pool pauses and a 4% BAL token drop. - Hong Kong's SFC now allows licensed crypto exchanges to access global liquidity pools, easing ringfenced rules to boost market competitiveness. - Ethereum stablecoins hit $2.82T in October volume, with USDC and USDT dominating as traders seek yields amid market volatility. - Hong Kong's reforms align crypto rules with traditional finance, exempting licensed tokens from trading history requirements

Bitget-RWA2025/11/03 20:14
DeFi's Security Challenges Confront Hong Kong's Efforts to Regulate for International Liquidity

SHIB's Legal Victory vs. Lack of Utility: The Meme Coin's Challenging Journey

- Shiba Inu (SHIB) joins FTSE Grayscale's crypto framework under "Consumer & Culture," aligning with SEC standards for ETP eligibility. - Despite regulatory validation, SHIB faces utility challenges: Shibarium's TVL remains below $1M, and its "meme coin" label deters institutional adoption. - Community resilience shows in record token burns, but analysts warn price targets depend on ecosystem growth, partnerships, and deflationary progress. - Market shifts toward AI/DePIN projects highlight SHIB's uphill b

Bitget-RWA2025/11/03 20:14
SHIB's Legal Victory vs. Lack of Utility: The Meme Coin's Challenging Journey