The UN’s policy brief on their United Nations Conference on Trade and Development (UNCTAD) has asked Kenya and other nations to regulate and tax the crypto industry. This step is to limit exposure to the meltdown in the crypto market and the threats of financial instability.
UNCTAD also wants Kenya to impose mandatory registrations for crypto transactions, digital wallets and tax transactions to make the sector less extractive.
The UN exchange organisation currently maintains that Kenya should charge entry fees for crypto trades and digital wallets and impose transaction taxes similar to excise duty charged on bank exchanges. Banks deduct 20% excise duty on all commissions and expenses charged on transactions.
Crypto exchanges are platforms operated by organisations where investors trade digital tokens like Bitcoin, Etherum and Tether among different coins.
“Regardless of the reason for the use of cryptocurrencies, crypto exchanges play a crucial role in enabling their broader deployment. Such exchanges function as clearinghouses, intermediating conversions between cryptocurrencies and sovereign currencies,” says UNCTAD.
The agency likewise wants banks and other financial institutions blocked from holding stablecoins and cryptocurrencies or offering related items to clients.
The UN exchange body has additionally asked the government to limit or preclude the commercial use of crypto exchanges and digital wallets openly and via social media to check the penetration of cryptos.
Also read: UNCTAD Reports Reveals Kenya Tops Crypto Ownership in Africa
