Kenya is taking the lead in regulating cryptocurrencies by assembling a multi-agency team comprising the central bank.
According to local news site NTV Kenya, this committee would create regulations and supervision for cryptocurrencies, sometimes referred to as virtual assets, and the businesses that deal with them (Virtual Asset Service Providers).
Prof. Njuguna Ndung’u, Cabinet Secretary of Kenya’s National Treasury, informed the National Assembly on the formation of the multi-agency working group. Regulators’ cautions on unlicensed virtual asset products and the Central Bank’s risk assessment, which raised issues with money laundering and terrorist funding, came before this.
This evaluation emphasized the necessity for regulatory actions by highlighting the possibility of money laundering and terrorist financing linked to virtual assets.
Furthermore, through irregular M-Pesa withdrawals, Kenyan officials discovered that in 2023, at least $20 million was poured into the economy. These transactions were connected to the presently halted Worldcoin iris-scanning project.
Kenya’s Bill Is Designed to Regulate the Crypto Market
In all of East Africa, Kenya has the most activity and interest in cryptocurrencies. It even comes in at number five among all of the marketplaces on the continent. With only over 4.4 million owners, Kenya lags behind Nigeria in terms of overall bitcoin ownership.
Kenya appears to be changing its stance on regulating cryptocurrencies. In 2023, the nation’s parliament resumed active participation in cryptocurrency-related discussions and projects following a period of criticism.
April 2024, Cryptoniteuae
