Kenya is officially preparing to legalize cryptocurrency trading in the country, including Bitcoin, according to officials. Kenya’s Treasury Cabinet Secretary John Mbadi says that the East-African country is preparing legislation for crypto assets, a major shift in policy regarding the industry.
“The emergence and growth of Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs) have given rise to innovations in the local and international financial system with dynamic opportunities and challenges,” Mbadi said according to The Standard, a local news outlet. According to Mbadi, Kenya’s goal is to capitalize on the potential benefits associated with the industry. This will have to be done while mitigating fraud, money laundering, and terrorism financing risks that come with cryptocurrencies.
“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 added. Kenya already launched a draft policy for crypto regulation back in December that is being looked over. The bill aims to establish a “fair, competitive and stable market” for crypto traders in Kenya, according to Mbadi.
Kenya To Reverse Previous Cryptocurrency Ban?
In December 2015 Kenya’s central bank issued a public notice warning against cryptocurrency use, prohibiting its use as tender. Furthermore, the country has never licensed any crypto exchange or service to operate. However, according to a UN report in 2022, almost 10% of Kenyan citizens still held cryptocurrency. From that point on, a shift began, and lawmakers began weighing the options of new regulations to allow crypto trading in the country.
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Now, Kenyan citizens will join other countries in Africa in legalizing cryptocurrency as tender. South Africa and the Central African Republic are already nations that allow crypto operations. Kenya could be the first of many more in the coming years to legalize Bitcoin amid its record growth.