Monat: Mai 2023

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Kenya eyes 3% tax on cryptocurrency transfers

  • Kenya’s Treasury Secretary outlined the tax proposals in a document sent to parliament on 4 May, 2023.
  • The 3% crypto tax will target cryptocurrencies and NFT transfers on exchanges and by individuals.
  • Kenya is one of the countries with the fastest growing adoption of cryptocurrencies in the world.

Kenya is seeking a 3% tax on the transfer of digital assets, budget proposals from the Treasury ministry outline.

The tax proposals were part of the Finance Bill 2023 that Njuguna Ndung’u, Cabinet Secretary for National Treasury and Economic Planning, sent to the National Assembly on Thursday, 4 May 2023. 

The Treasury CS is expected to present the budget statement to Parliament on 8 June, and could see the East African nation have the new taxation measures in place for the 2023/2024 budget year, the details of the proposal showed.

Authorities eye tax for crypto and NFTs

Apart from cryptocurrencies, the tax proposals also target non-fungible token (NFT) transfers. These will relate to transactions made by exchanges as well as individuals.

Digital assets are classified as property in Kenya, and any gains from the sale, exchange, or disposal of such assets would be subject to capital gains tax. Other than crypto, Kenya also targets monetized online content, with the sector set to be subject to a 15% tax.

Around 8.5% of Kenya’s adult population own or hold cryptocurrencies. While countries in Africa such as Nigeria and South Africa have more people owning crypto, Kenya places higher in terms of percentage of the population. 

Recent statistics on global crypto ownership and usage by the UN ranked Kenya fifth worldwide and fourth among emerging economies – behind Ukraine, Russia and Venezuela.

According to the latest ownership figures from Singapore-based crypto research company Triple A, over 2.7 million Kenyans own digital assets. Globally, cryptocurrency ownership has risen to an average of 4.2%, with numbers jumping from 320 million in early 2022 to over 420 million in May 2023.

Kenya’s plans for crypto taxation rules come as the trend around the world sees increased regulatory scrutiny of cryptocurrencies. The UK, EU and other jurisdictions are looking to offer clear regulatory guidelines for the industry, particularly around overall protection of investors amid likely risks from unregulated crypto exchanges.

The post Kenya eyes 3% tax on cryptocurrency transfers appeared first on CoinJournal.

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3 reasons to invest in Metacade after the 275% rally

  • Metacade price has jumped by 275% from its all-time low.

  • The token will benefit from a Fed pivot as US banks collapse.

  • Technicals are supportive of the cryptocurrency.

Metacade (MCADE) price has done well since going public in April this year. In all, data compiled by Uniswap shows that the token has jumped by more than 275% from its all-time low, making it one of the best-performing cryptocurrencies in the world. Here are three reasons why Metacade price will likely continue soaring in the near term.

Macro events favor cryptocurrencies

The first main reason to invest in Metacade is that macro events seem to favor cryptocurrencies and other assets. On Wednesday, the Federal Reserve decided to hike interest rates by 0.25%, bringing them to about 5.25%. Analysts believe that the Fed has now ended its hiking cycle since there are signs that the American economy is slowing.

For example, GDP data published last week showed that the economy slowed down in A1. Further data showed that the manufacturing sector continued contracting in April this year. Retail sales have slowed as inflation remains stubbornly high.

Most importantly, the banking sector is at its biggest risk in years. On Monday, the FDIC seized First Republic Bank and sold it to JP Morgan, as we wrote here. Other banks are at a significant risk. For example, PacWest shares tumbled by over 50% on Thursday while Comerica and Western Alliance fell by double-digits. 

Therefore, it is hard to fathom the Fed continuing hiking rates in a period when banks are collapsing. As such, there is a likelihood that Metacade will and other altcoins will do well because of Bitcoin’s role as a safe haven.  In fact, Bitcoin and other major tokens have outperformed stocks this year.

Metacade important news

The other main reason to invest in Metacade is that there are some important news that could push the token higher. First, the number of MCADE holders has continued rising in the past few weeks. 

Data compiled by Etherscan shows that the number has jumped to 9,239, which is much higher than where it was last month. This is a sign that the token is gaining traction and that the number will get to 10k soon. The number of MCADE transfers has jumped to over 27,289.

Meanwhile, according to the Metacade white paper, the developers are working to get the token listed in more centralized exchanges. Already, the token has been listed in platforms like MEXC and BitMart. Other potential exchanges where the developers plan to list it are Binance and OKX. In most cases, cryptocurrencies tend to do well after a major exchange listing.

Further, the developers are working on the Metacade game, which is expected to be launched in the next few months. We expect that the game will do well, which will help the token gain traction in the next few months. Historically, crypto tokens tend to do well ahead of a major event.

Metacade technicals are supportive

The other main reason to invest in MCADE is that technicals are supportive. On the four-hour chart, we see that the Metacade price has been in a bullish trend in the past few weeks. As it rose, the token moved above the important resistance point at $0.034, the highest point on April 20th. It has now retested that price in what is known as a break and retest pattern.

Metacade is being supported by the 50-period moving average. Therefore, there is a likelihood that the token will bounce back as buyers target the all-time high of $0.045. A break above that level will see it jump to the next psychological level at $0.05.

The post 3 reasons to invest in Metacade after the 275% rally appeared first on CoinJournal.