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ARTICLE AD BOX
- Kenya’s tax authority collected $77.5M from crypto traders and plans a real-time monitoring system.
- The KRA aims to curb crypto tax evasion using AI and direct links with exchanges.
The Kenya Revenue Authority (KRA) has made a significant step toward taxing cryptocurrency transactions by collecting around $77.5 million from 384 crypto traders during the fiscal year 2023-24.
This notable volume places Kenya among the top crypto marketplaces in Africa and emphasizes its increasing interaction with digital assets. Still, the KRA’s goals transcend mere revenue collection.
Additionally in development is a real-time tax tracking system that would link straight to centralized crypto exchanges (CEXs). This new technology seeks to track important data automatically, including transaction volumes and taxable gains, therefore enabling the KRA to better monitor events.
The Kenya Revenue Authority reported successfully collecting approximately $77.5 million in taxes from 384 cryptocurrency traders during the 2023-24 fiscal year. The KRA has proposed the implementation of a real-time tax system directly linked to CEXs to automatically… pic.twitter.com/bSahkjPzO3
— Crypto.NG (@aproko_cryptoNG) November 8, 2024
Kenya’s Proactive Approach to Combat Crypto Tax Evasion with Real-Time Monitoring
Kenya’s choice to implement such a system shows its proactive attitude to control the fast changing crypto industry. Concerns about tax evasion and fraud grow along with the increasing usage of digital assets, especially in scattered and usually anonymous transactions.
By using this real-time tax monitoring system, the KRA seeks to solve these problems by increasing awareness of crypto-generated transactions carried out inside Kenya.
Furthermore, by gathering real-time data from CEXs, the system will assist in raising trader compliance since many of them could not have been completely conscious of their tax responsibilities in the context of cryptocurrencies.
This data-driven approach is supposed to simplify Kenya’s tax system so that the KRA may aim for revenue collection with hitherto unheard-of accuracy.
Innovative Technologies and Global Standards Drive Enhanced Tax Compliance
Under a more general plan, Kenya’s government has acknowledged how sophisticated technology such as artificial intelligence (AI) and machine learning may help to increase tax compliance.
By using these instruments, Kenya hopes to not only increase its tax collection but also recover possible losses from the rather popular crypto market.
Advanced Technologies Enhance Tracking and Fiscal Oversight
AI and machine learning will enable KRA to spot trends in trading activity, therefore facilitating tracking of high-volume traders or identification of odd transaction activity suggestive of tax avoidance. Kenya leads African nations looking for creative ideas to improve fiscal control in the crypto sector in terms of digital technologies since they give such priority.
This action fits global patterns in crypto taxes. To improve reporting standards, the Netherlands has adopted crypto tax rules requiring service providers to reveal user data to tax authorities.
Following the DAC8 directive of the EU, as we previously noted, the Dutch plan seeks to streamline tax reporting all throughout Europe, therefore enabling member states to better control their own crypto tax systems. Likewise, Kenya’s actions show a great will to implement worldwide best practices for crypto taxes.
Aiming to reduce tax evasion and fraud, CNF reported that KRA’s new system will interact with crypto platforms to monitor real-time transactions. Kenya also intends to use artificial intelligence and machine learning to improve tax compliance and recoupment of lost income from the burgeoning crypto market.
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