Regulation
Developers Creating Pro-Bitcoin Solutions in Kenya Despite Crypto Crackdown in Nigeria, South Africa Wants Crypto Tax Compliance
Crypto Africa This Week: Kenyan Developers Want to Build More Crypto Payment Solutions, Crypto Issues in Nigeria, South Africa Plans Crypto Tax Raid.
Africa is no longer on the fringes of cryptocurrencies, but represents a face of adoption. As developers look to create Bitcoin-friendly payment solutions in Kenya, South Africa is pushing for greater tax compliance among cryptocurrency traders.
Meanwhile, Nigeria’s decision to crack down on cryptocurrency trading and “protect” the Naira may prove counterproductive. Let’s dive into:
Kenya’s Bitcoin community empowers developers in Nairobi
As Bitcoin and cryptocurrencies gain traction in Africa, developers are convinced that innovative crypto payment solutions are needed.
Accordingly, Africa Free Routing is organize a free four-day training camp in Nairobi from June 10 to 13.
The goal is to provide developers with the skills needed to build modern crypto payment platforms.
It should be noted that the goal will be to build BTC-oriented solutions by taking advantage of layer 2 of the network, the Lightning Network.
The crackdown on cryptocurrencies and Nigeria’s economic challenges
While this is happening, Nigeria continues to crack down on cryptocurrencies.
Recently, the head of the central bank, Olayemi Cardoso, said that Nigeria has lost $26 billion in tax revenue Binance.
As it stands, the trial of two Binance executives, Nadeem Anjarwalla (who fled to Kenya) and Tigran Gambaryan, has been a focal point.
Nigerian authorities say their actions are necessary to discourage fraud and speculation, especially against the free-falling Naira.
Although Binance left the country and KuCoin delisted the Naira, the currency is still under enormous selling pressure.
Even if Nigeria cracks the whip, observers believe its actions are ineffective and could even have negative impacts.
In their view, the country would prefer to regulate the industry rather than inadvertently push users into the black market.
Most users opt for cryptocurrencies like Bitcoin and USDT to preserve wealth in the face of currency devaluation.
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Will the United States take action against Nigeria?
Nigeria’s decision to detain Tigran Gambaryan, a US citizen, appears to be attracting the attention of the international community.
This week, US lawmakers, led by House Foreign Affairs Committee Chairman Michael McCaul, did called for the Biden administration to intervene.
In their view, they argue that the decision to detain Gambaryan is an attempt to extort Binance by the Nigerian government – an unfair move in regulating cryptocurrencies in Africa.
McCaul and members of the commission want the case transferred to the Office of the Special Presidential Envoy for Hostage Affairs.
SARS Wants Tax Compliance on Cryptocurrencies
In South Africa it is the South African Revenue Service (SARS). intensifying efforts to ensure tax compliance among cryptocurrency traders.
As SARS intensifies, tax experts want cryptocurrency traders and investors to know that all their activities are subject to strict reporting requirements. Traders must declare all income and capital gains from cryptocurrencies for tax purposes.
“Any profits from cryptocurrency trading could fall under the tax net and be subject to disclosure and possible liability to SARS. As simple as this revelation may seem in theory, unfortunately the reality is more complicated. Cryptocurrency transactions are subject to various tax regulations, including capital gains tax, income tax, and in some cases even VAT.
South Africa is progressive and, unlike Nigeria, regulates cryptocurrency trading activities.
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Disclaimer: Cryptocurrencies are a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all your capital.