The Kenyan government is taking steps to legalize and regulate crypto.
The National Treasury of Kenya last month released a draft policy outlining the broad outlines of a potential regulatory framework for digital assets.
Commenting on the policy, John Mbadi Ng’ongo, the Cabinet Secretary of the National Treasury and Economic Planning, said the Kenyan government wants to “capture the opportunities” offered by crypto and virtual asset service providers (VASPs) while wants to manage the risks of the sector. .
“This policy guides the establishment of a sound legal and regulatory framework that lays the fundamental foundation for a fair, competitive and stable market for VAs and VASPs with the aim of promoting innovation, increasing financial literacy and ensuring sound risk management. The main objective of the policy is to strengthen Kenya as a key player in the global digital financial ecosystem.”
The draft policy represents a major change from the Kenyan government’s previous approach to the sector. In 2015, the country’s central bank published a notice discouraging the public from purchasing cryptocurrencies, noting that digital assets such as Bitcoin (BTC) were not legal tender and did not enjoy government protection.
Despite the lack of regulation, Kenyan news outlet The Standard reports that there is “widespread public use” of crypto in the country in unregulated spaces.
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