In a bold move to tighten oversight in the cryptocurrency arena, the Kenyan government has assembled an elite inter-agency task force. This powerhouse team, featuring key players from various sectors including the Central Bank of Kenya, has been charged with the critical task of crafting comprehensive regulations for cryptocurrencies and their service providers.
This strategic initiative follows the government’s proposal last year to introduce a 3% tax on cryptocurrency transactions, signaling a serious commitment to regulating the burgeoning digital currency market.
Treasury Cabinet Secretary Njuguna Ndung’u has raised the alarm over the escalating threat of online scams and dubious investment schemes, underscoring the perils of engaging with unregulated financial avenues.
The urgency of this regulatory push was further highlighted by a revealing investigation conducted in September 2023 by the Central Bank’s Financial Reporting Centre. The probe unearthed significant risks associated with virtual assets and their service providers, including potential avenues for money laundering and terrorism financing.
Adding to the cautionary landscape, the Directorate of Criminal Investigations recently issued a warning against falling prey to online cryptocurrency scams, reinforcing the government’s stance on safeguarding Kenyan investors.
Kenya, a notable hub for cryptocurrency activity in East Africa, has witnessed a surging interest in digital trading. In response to this growing phenomenon, the government has sought insights from various stakeholders. Notably, it commissioned a community-based organization to draft a bill aimed at regulating the crypto market. In a significant development, February 2024 saw the Blockchain Association of Kenya submit the inaugural draft of the proposed legislation.
With these measures, Kenya is taking decisive steps towards establishing a regulated and secure cryptocurrency landscape, reflecting its commitment to protecting investors while fostering innovation and growth in the digital finance sector.
Last modified: April 26, 2024
