The Kenyan Treasury is drafting legislation to regulate cryptocurrencies and virtual asset service providers.
Kenyan Treasury is moving toward legalizing cryptocurrency trading, marking a significant shift in its financial policy.
| Key Takeaways: – The Kenyan Treasury is drafting legislation to regulate cryptocurrencies and virtual asset service providers. – The proposed framework seeks to create a fair and stable market while addressing risks. |
Kenyan Treasury Cabinet Secretary John Mbadi announced that the government is drafting legislation to regulate virtual assets and service providers, including popular cryptocurrencies like Bitcoin.
Mbadi highlighted the rapid emergence of virtual assets as both a challenge and an opportunity for the financial system. He emphasized the need for a robust regulatory framework to harness the benefits of cryptocurrencies while addressing risks such as fraud, money laundering, and terrorism financing.
“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 reluctant risks,” Mbadi stated.
Kenya initially introduced a draft policy in December 2024 aimed at establishing a fair, competitive, and stable cryptocurrency market. The policy also seeks to promote financial literacy and innovation while ensuring compliance with international standards. According to Mbadi, Kenya’s approach aligns with a growing global trend of cryptocurrency regulation, citing examples from Morocco, the United States, and Russia.
The move comes amid increasing scrutiny from international organizations. The Financial Action Task Force (FATF) recently urged Kenya to strengthen its anti-money laundering measures and address terrorism financing risks. Kenya, alongside South Africa and Nigeria, remains under FATF’s heightened scrutiny, a designation that could influence trade and investment costs.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
