Kenya’s VACC Challenges High Digital Asset Tax Amid Regulatory Reform

The Virtual Assets Chamber of Commerce (VACC) in Kenya is voicing concerns over the proposed Virtual Asset and Virtual Asset Service Providers Bill 2025. The bill suggests a 3% digital asset tax, criticized as being much higher than international standards, such as Indonesia’s 0.1%-0.2% tax rate. VACC warns this could harm the digital asset sector’s growth in Kenya. The bill also proposes a licensing regime and investor protection measures, marking Kenya’s first comprehensive regulation for the industry. While supporting regulatory clarity, VACC urges the government to align with global standards like the EU’s MiCA framework, reducing compliance costs to attract foreign investment and foster local entrepreneurship. Clear stablecoin regulations are also emphasized to enhance financial inclusion, vital for cross-border payments in Kenya. The situation reflects broader issues seen in countries like India and South Korea, where high crypto taxes face significant opposition. These developments hold critical implications for crypto traders preparing for potential shifts in the regulatory landscape.