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According to the Secretary of the Treasury Cabinet “they will take advantage of the benefits of cryptocurrencies.”
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Last December the authorities presented a bill to regulate bitcoin.
Kenya is officially preparing to legalize trading in bitcoin (BTC) and other cryptocurrencies, according to Treasury Cabinet Secretary John Mbadi.
The official assured that The East African country is preparing legislation for crypto assets, generating an important change in Kenyan policy regarding the ecosystem.
“The emergence and growth of virtual assets (VA) and virtual asset service providers (VASP) have given rise to innovations in the local and international financial system with dynamic opportunities and challenges,” Mbadi told a local media.
The objective is capitalize the benefits potentials associated with this ecosystem, in addition to mitigating the risks of fraud, money laundering and terrorist financing that – according to the official – cryptocurrencies entail.
Hence, the Kenyan government has committed to creating the legal and regulatory framework in order to regulate and supervise exchange activities of cryptocurrencies.
Last December the authorities presented a bill for the regulation of cryptocurrencies, which is currently under review. The proposal aims to establish a “fair, competitive and stable market” for cryptocurrency traders in Kenya, Mbadi said.
The official’s statements are made shortly after the International Monetary Fund (IMF) published a report dedicated to the African country and published this January 8. In it he recommends Kenya create a clear regulatory environment and predictable for the cryptocurrency market.
In his publication, the IMF emphasizes on the need for a legislative framework with specific definitions and classifications of cryptoassets, including guidelines for effective inter-institutional cooperation and continuous market monitoring.
Considering that Kenya has outdated regulations, the agency offered to provide advice. The guidelines include standards for compliance with the Bali Fintech Agenda (IMF/World Bank), the FATF Recommendations against money laundering and the financing of terrorism, and the FSB Global Regulatory Framework for Crypto Asset Activities.
Kenya opens up to “harness the benefits of bitcoin”
The IMF’s suggestions come amid a change in government stance on cryptocurrencies, which contrasts greatly with the line of thinking held in 2015. As reported by NoticiasVE, during that year the Central Bank of Kenya made several warnings against of the use of cryptocurrencies and maintained a ban.
At that time, the agency warned Kenyans about “the dangers” of using bitcoin, recalling that the digital currency was not legal tender in the country. He insisted that the users of these assets They had no legal protection and the government did not offer guarantees for that investment.
For this reason, the country has never authorized the operation of cryptocurrency exchange platforms or services, despite the fact that almost 10% of Kenyan citizens own cryptocurrencies, according to UN data.
However, the position has begun to change in the last year. Last May, President William Ruto said he was willing for the African country to open its space to bitcoin miners. This, as part of a strategy to attract investors and finance the energy needs of the sector.
Kenya is offering cryptocurrency mining companies surplus geothermal energy to help them meet their energy needs. With this objective, through the state electricity company KenGen, work is being done on the installation of miners in an energy park at the company’s main geothermal power plant.
With this plan in mind, a change in position regarding the industry began and legislators began to weigh the options for new regulations to allow cryptocurrency trading in the country.