Kenya is planning a major change to how it handles digital money. In a new proposal for the 2026 Finance Bill, the government wants to force cryptocurrency exchanges to share their customers’ names and transaction records with the tax office.
For a long time, people have used “crypto” because it allowed them to stay somewhat anonymous. This new law would change that, making crypto platforms act more like traditional banks.
The New Requirements
If the bill is passed, companies that provide digital asset services will have to follow strict rules:
• Annual Reports: They must send a report every year to the Kenya Revenue Authority (KRA).
• Customer Details: The report must include the names of Kenyan users, their trading history, and what is happening in their digital wallets.
• Strict Penalties: Giving false information could lead to a fine of KES 100,000 ($775), up to three years in prison, or both.
Why is Kenya Doing This?
The Kenyan government believes there is a lot of untaxed money moving through digital assets. The KRA estimates that between 2021 and 2022, crypto transactions in Kenya were worth about KES 2.4 trillion ($18.5 billion). That is nearly 20% of the entire country’s economy (GDP).
By bringing crypto into the formal tax system, Kenya aims to:
1. Stop Tax Evasion: Ensure people pay taxes on the profits they make from trading.
2. Track Illegal Money: Make it harder for criminals to hide “dirty” money in digital assets.
3. Cross-Border Tracking: The law would allow Kenya to share this data with other countries to find people hiding money abroad.
A Global Trend
Kenya is not alone in this move. This is part of a worldwide effort called the Cryptoasset Reporting Framework (CARF).
• Global Standards: More than 75 countries including South Africa, Singapore, and many European nations have agreed to start sharing crypto data with each other.
• Starting Soon: Most of these countries will begin exchanging this information between 2027 and 2028.
