The 1.5% crypto transaction tax in Kenya threatens to divert startups to countries with more favorable policies, undermining its fintech leadership. The tax could lead to increased operational costs, driving talent and innovation abroad.
More than 450 million unbanked Africans may face heightened transaction costs due to the tax, making it harder for young, tech-savvy individuals who earn in Bitcoin (BTC) or Tether (USDT) to convert their earnings for daily expenses.
Kenya’s push for regulatory compliance must balance transparency with individual rights. A considered approach, including tiered taxes and privacy-focused measures, could enhance the regulatory environment and support financial inclusion.
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