Kenya preparing to legalize crypto: report

Kenya’s Treasury Secretary John Mbadi has announced plans to develop a draft policy to regulate virtual assets and virtual asset service providers.

Speaking on Friday, Mbadi said the proposed framework sought to take advantage of the opportunities presented by cryptocurrencies while addressing associated risks including money laundering, terrorist financing and fraud. according to to the standard.

Mbadi said the Kenyan government is committed to creating a legal and regulatory framework that will enable AVs and VASP to reap the rewards.

In December, Kenya presented a draft policy focused on the regulation of virtual assets and service providers in the cryptocurrency sector. According to Mbadi, the policy aims to foster a fair, competitive and stable market for sector players while promoting innovation and financial literacy.

Mbadi also highlighted the global trend toward regulating cryptocurrencies, citing examples from Morocco, the United States and Russia.

Africa is home to a growing number of fintech unicorns that provide payment solutions to the region’s largely unbanked population. Kenya’s framework will adopt flexible regulatory approaches to align with international standards and support this growth.

The Financial Action Task Force exhorted Kenya in 2024 to intensify its anti-money laundering efforts and strengthen measures against the financing of terrorism. The FATF placed Namibia on its watch list, removed Uganda and continued increased surveillance of Kenya, South Africa and Nigeria – a move that could impact trade and investment costs. investment from Kenya.

If adopted, this policy could position Kenya as a major player in digital finance by protecting consumers and ensuring compliance with global regulatory standards.