Kenya plans new crypto regulations ahead of January 24 deadline
Kenya is advancing its regulatory framework for cryptocurrencies, with a draft proposal open for public feedback until January 24.
Finance Minister John Mbadi announced the government's commitment to establishing a legal structure for virtual assets and service providers, indicating a significant shift in the country's approach to cryptocurrency.
The draft, titled “National Policy on Virtual Assets and Virtual Asset Service Providers,” aims to create a fair, competitive, and stable market while addressing risks such as money laundering, terrorism financing, and consumer protection.
“The Government of Kenya is committed to creating the necessary legal and regulatory framework in order to leverage opportunities presented by VAs and VASPs while managing the resultant risks,” Mbadi emphasised.
This initiative follows a long history of caution from the Central Bank of Kenya (CBK), which had previously warned against the use of cryptocurrencies due to concerns over fraud and lack of legal protections.
In September 2023, a pivotal report recommended regulating virtual asset activities to mitigate risks and strengthen anti-money laundering frameworks.
If approved, this legislation would position Kenya alongside other African nations like South Africa and Nigeria that have already implemented crypto regulations.
According to Chainalysis’ 2024 report, Kenya ranks 21st globally in crypto adoption, with stablecoin transactions making up nearly half of the total transaction volume in Sub-Saharan Africa.
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