Kenya's plan to implement a 1.5% crypto transaction tax could have detrimental effects beyond revenue generation. It may jeopardize the country's position as a regional fintech leader, drive startups away, and disrupt Africa's digital economy. The tax, part of the Digital Asset Tax (DAT) proposal, could increase transaction costs, pushing users towards informal channels and hindering financial inclusion efforts. With a significant unbanked population in Africa, digital assets play a crucial role in extending financial services. The tax could particularly impact young Kenyans earning in cryptocurrencies, affecting their ability to cover essential expenses. Kenya's regulatory decisions influence other African nations and global investors. Implementing a blanket tax may deter innovation and inclusion. To avoid negative consequences, Kenya should consider tailored taxation, innovation sandboxes, privacy-focused compliance, and phased implementation to support the growth of digital assets in Africa. Read more AI-generated news on: https://app.chaingpt.org/news