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?> Kenya Prepares to Legalize Cryptocurrencies in Policy Shift: Report
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CoinDesk 2025-01-10 17:53:00

Kenya Prepares to Legalize Cryptocurrencies in Policy Shift: Report

Kenya Prepares to Legalize Cryptocurrencies in Policy Shift: Report

Kenya’s Treasury Cabinet Secretary John Mbadi has said the country is preparing legislation to legalize cryptocurrencies, a shift from the government’s previous warnings against 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 local news outlet The Standard . Mbadi stressed a need for a regulatory framework to both capitalize on the potential benefits of the industry while mitigating the risks posed by money laundering, terrorism financing and fraud. “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 said. Kenya launched a draft policy on virtual assets and virtual asset service providers in December. The draft policy aims to establish a “fair, competitive and stable market” for cryptocurrency industry players and foster innovation and financial literacy, Mbadi said. Kenya has historically kept a cautious stance toward the cryptocurrency industry. In December 2015 the country’s central bank issued a public notice warning against cryptocurrency use, stating that these assets weren’t legal tender in the country and no entity was licensed to offer money remittance services using crypto in Kenya. Fast forward to 2022 and lawmakers in the country started weighing on whether to move ahead with a law to tax crypto as the industry kept on growing in the country. A United Nations report at the time showed roughly 8.5% of Kenyans owned cryptocurrencies. CoinDesk did not hear back from Kenya's Treasury before press time.

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