Kenya moves to make regulatory and monitoring frameworks on Cryptocurrencies and Digital Assets to curb exposure of its customers to fraud and scam related challenges.
Followingthe establishment of a multiagency technical working group, the government has moved to regulate the operations of cryptocurrencies in the country to protect their users.
While responding to National Assembly on the question raised by nominated MP Irene Mayaka, National Treasury Cabinet Secretary Prof Njuguna Ndung’u said the multi-agency technical committee includes the Central Bank of Kenya (CBK), the financial institution industry regulator.
The mandate of the technical committee is to develop a regulatory and monitoring framework for the usage of cryptocurrencies also referred to as Virtual Assets (VAs) and those providing crypto assets and other virtual or digital assets services otherwise called Virtual Asset Service Providers (VASPs).
In Kenya cryptocurrency phenomenon is a big challenge because the country does not have “any regulatory framework” to monitor its operations. This exposes consumers to fraud and scams related challenges.
Kenya: Cryptocurrencies, Digital Assets On Regulatory and Monitoring Frameworks
“Due to the emergence of online marketing of virtual assets and online fraudulent investment options, CBK and other financial sector regulators issued notices warning the public against the use of unlicensed financial products and services,” says Prof Ndung’u.
Kenya’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Mutual Evaluation Report (MER) of 2022 by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) recommended that Kenya takes policy decision on Vas and VASPs.
In 2023 DCI revealed that over Sh2.5 billion was irregularly injected into the economy through Mpesa withdrawals in payments to Kenyans who had their Irises scanned by the operatives of cryptocurrency Worldcoin before its activities in the country were hurriedly suspended by the government.
Kenya is ranked second in Africa in cryptocurrency activities.
Kenya: Cryptocurrencies, Digital Assets On Regulatory and Monitoring Frameworks
