Taxation of Cryptocurrencies in African Countries: Assessing Regulatory Approaches and Challenges

Abstract

The taxation of cryptocurrencies, a growing phenomenon with rising adoption, presentscomplex issues for African countries. The struggle revolves around classifying these assets fortaxation and grappling with definitional issues to ensure enforceability. The pressing problemis developing crypto asset tax regimes that support investment and usage without inhibitinginnovation. This paper conducts a comparative analysis of regulatory approaches in Kenya,Nigeria, and South Africa to illuminate the substantial policy challenges within the cryptomarket in Africa. It explores the varied classification of crypto assets, global approaches, andassociated challenges. The report highlights inadequacies and recommends progressive taxationsystems by contrasting these African nations' taxing policies to worldwide regulatorystandards. Conclusively, it suggests adapting and harmonising tax rules across Africa.