Crypto Africa this week: Kenyan developers to build more crypto-payment solutions, crypto troubles in Nigeria and South Africa plans crypto tax raid.
Africa is no longer on the crypto fringes but represents a face of adoption. As developers look to build Bitcoin-facing payment solutions in Kenya, South Africa is pushing for more tax compliance among crypto traders.
Meanwhile, Nigeria’s decision to crack down on crypto trading and “protect” the Naira could be backfiring. Let’s dive in:
Kenya Bitcoin Community Empowering Developers in Nairobi
As Bitcoin and crypto gain traction in Africa, developers are convinced that innovative crypto-payment solutions are needed.
Accordingly, Africa Free Routing is organizing a free four-day boot camp in Nairobi from June 10 to 13.
The goal is to equip developers with the necessary skills to build modern crypto-payment platforms.
Of note, the goal will be to build BTC leaning solutions riding on the network’s layer-2, the Lightning Network.
Nigeria’s Crypto Clampdown and Economic Challenges
While this is happening, Nigeria continues to clamp down on crypto.
Recently, the central bank chief, Olayemi Cardoso, said Nigeria lost $26 billion in tax revenues from Binance.
As things stand, the prosecution of two Binance executives, Nadeem Anjarwalla (who escaped to Kenya) and Tigran Gambaryan, has been a focal point.
Nigerian authorities say their actions are necessary to deter fraud and speculation, especially against the free-falling Naira.
Though Binance has left the country and KuCoin has delisted the Naira, the currency is still under immense selling pressure.
Even as Nigeria cracks the whip, observers think its actions are ineffective and could even have negative impacts.
In their view, the country would rather regulate the sector than inadvertently push users to the black market.
Most users are opting for cryptocurrencies like Bitcoin and USDT to preserve wealth in the face of currency devaluation.
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Will The United States Act Against Nigeria?
Nigeria’s decision to detain Tigran Gambaryan, a United States citizen, seems to be drawing the attention of the international community.
This week, lawmakers in the United States, led by House Foreign Affairs Committee Chairman Michael McCaul, have called for the Biden administration to intervene.
In their view, they allege that the decision to hold Gambaryan is an attempt to extort Binance by the Nigerian government – not a fair move in Africa crypto regulation.
McCaul and the committee members want the case transferred to the Office of the Special Presidential Envoy for Hostage Affairs.
SARS Wants Crypto Tax Compliance
In South Africa, the South African Revenue Service (SARS) is intensifying efforts to ensure tax compliance among crypto traders.
As SARS steps up, tax experts want crypto traders and investors to know that all their activities are subject to rigorous reporting obligations. Traders must file all crypto income and capital gains for tax purposes.
“Any profits resulting from dealing in crypto assets may fall within the tax net and be subject to disclosure and possible liability towards SARS. As simple as this disclosure may sound in theory, unfortunately, the reality is more complicated. Cryptocurrency transactions are subject to various tax regulations, including capital gains tax, income tax, and even VAT in some cases.”
South Africa is progressive and, unlike Nigeria, regulates crypto trading activities.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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