The government of Kenya is taking steps towards legalizing and regulating cryptocurrency in the country. The National Treasury of Kenya recently released a draft policy that outlines the framework for regulating digital assets.
In a statement, John Mbadi Ng’ongo, the cabinet secretary for the National Treasury and Economic Planning, expressed the government’s desire to capitalize on the opportunities presented by cryptocurrency and virtual asset service providers (VASPs) while also managing the associated risks. He emphasized the importance of establishing a sound legal and regulatory framework that will create a fair, competitive, and stable market for virtual assets and VASPs. The ultimate goal is to position Kenya as a significant player in the global digital finance ecosystem.
This draft policy marks a significant shift from the government’s previous stance on cryptocurrency. In 2015, the Central Bank of Kenya issued a notice cautioning the public against investing in cryptocurrency, citing that digital assets like Bitcoin were not legal tender and did not have government protections. Despite this lack of regulation, there has been widespread public use of cryptocurrency in unregulated spaces in Kenya, according to reports from The Standard.
The move towards regulating cryptocurrency in Kenya is a positive step towards embracing innovation, enhancing financial literacy, and ensuring sound risk management within the sector. By creating a conducive regulatory environment, the government aims to foster growth and development in the digital finance space.
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In conclusion, Kenya’s push towards legalizing and regulating cryptocurrency demonstrates a proactive approach towards embracing digital finance and fostering innovation in the country. Stay tuned for more updates on this evolving regulatory landscape.