Kenya To Legalize Cryptocurrencies After Years of Ban

Kenya has finally lifted the blanket ban on cryptocurrencies after nearly 10 years. Treasury Cabinet Secretary (CS) John Mbadi said the move is aimed at spurring innovation in the finance sector and tap into opportunities presented by crypto industry.

The Treasury proposed a policy on Virtual Assets and Virtual Asset Service Providers which seeks to regulate cryptocurrencies.

“Kenya’s financial sector is a beacon of innovation and growth in Africa. 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,” CS Mbadi said.

Cryptocurrency is taking center stage at the global digital economy and Kenya is marking its position in the global market for digital assets.

READ: Why IMF Urged Kenya to Regulate Crypto Assets Market

In 2015, Kenya banned Crypto activities in the country with the Central Bank of Kenya (CBK) condemning the use citing the risk associated with Crypto currency in the market.

Despite the caution, the growth of crypto usage has been witnessed with many people opting to the activity.
In 2017, the Kenyan government addressed the increase rate of crypto in the country, highlighting it’s importance majorly in improving economy and innovation.

According to the bill, Crypto is to be regulated for fair and balanced market activity. Saving and investing in crypto has brought about foreign investment and international partnerships which is of great a significance to the country’s economy.