The post Kenya Implements Real-Time Crypto Tracking for Better Tax Compliance appeared on BitcoinEthereumNews.com.

The KRA’s new system will integrate with crypto platforms to track real-time transactions, aiming to curb tax evasion and fraud. Kenya plans to use AI and machine learning to enhance tax compliance and recover lost revenue from the growing crypto market. Tracking crypto transactions in real-time is something the Kenya Revenue Authority (KRA) is doing in big measure. This action is meant to solve the rising tax losses in the nation resulting from ineffective monitoring of the developing crypto market. Given Kenya’s crypto sector’s projected Ksh 2.4 trillion in transactions between 2021 and 2022—about 20% of the country’s GDP—a more strong tax collection mechanism becomes absolutely vital. Real-Time Tracking for Crypto Transactions to Enhance Tax Compliance  To gather important transaction data, including the time, date, and value of every operation, the new tax system will interface with crypto markets and exchanges. Preventing tax avoidance and making sure all income connected to cryptocurrency is taxed in line with Kenya’s Income Tax Act are the main goals of the KRA. Though organizations like the Capital Markets Authority or the Central Bank of Kenya mostly control them, profits from cryptocurrency transactions are legally taxable. This legislative change coincides with the growing popularity of cryptocurrency in Kenya, despite not being as common as other financial innovations like mobile money. Mostly because digital currencies have cheaper fees and simplicity of cross-border money transfers than conventional banking systems, many people utilize them to save money, send remittances, and make overseas purchases. But because of their distributed character, cryptocurrency have also drawn appeal to people engaged in illicit operations such as money laundering and fraud. Apart from real-time tracking, the KRA intends to improve tax compliance using artificial intelligence (AI) and machine learning technologies. These technologies will enable the authority to identify fraudulent behavior and maximize resource…

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Filed under: News - @ October 19, 2024 11:26 am