Kenyans Closer to Cryptocurrency Regulation
The Kenyan government is preparing to unveil legislation that will officially acknowledge cryptocurrencies, signaling a shift from its previous reservations surrounding the digital asset landscape.
John Mbadi, the Cabinet Secretary for Treasury, revealed that Kenya is in the midst of crafting new laws that will pave the way for the acceptance of cryptocurrencies—an interesting turn from the government’s prior stance that was more restrictive regarding the crypto market.
Legislative Developments
Local news outlets reported that Mbadi acknowledged the rapid growth of virtual assets (VAs) and virtual asset service providers (VASPs) and stressed that they bring both exciting opportunities for innovation and significant challenges that must be addressed.
He highlighted the necessity of a regulatory framework that not only promotes the positives of the crypto sector but also mitigates the risks linked to illegal financial operations.
The Kenyan government is committed to building a robust legal and regulatory framework aimed at maximizing the benefits offered by virtual assets and their service providers while simultaneously managing the risks, Mbadi reiterated.
Historical Context
Historically, Kenya has been cautious regarding cryptocurrency adoption.
Back in 2015, the central bank warned against using cryptocurrencies, asserting that they were not considered legal tender and that no accredited body could provide remittance services involving cryptocurrencies within the nation.
However, the narrative began to shift by 2022 as the crypto scene gained traction in Kenya.
Lawmakers started to explore the possibility of creating a taxation framework for digital currencies.
A report by the United Nations during that time found that approximately 8.5% of Kenyans had delved into cryptocurrency ownership.
CoinDesk has reached out to Kenya’s Treasury for additional insights but had yet to receive a response at the time of this publication.
Source: Coindesk
