Kenya is taking a big step towards officially recognizing and regulating cryptocurrencies. The government recently unveiled a draft policy that lays out the groundwork for a new digital asset regulatory system.
A Shift in Government Policy
This marks a significant change from Kenya’s previous stance. Back in 2015, the central bank warned citizens against using crypto, stating that digital assets like Bitcoin weren’t legal tender and lacked government protection. However, despite this, crypto use has apparently become quite common in Kenya.
The New Plan: Legalization and Oversight
The National Treasury’s new policy aims to harness the potential benefits of crypto and virtual asset service providers (VASPs), while also managing the risks involved. The goal is to create a fair, competitive, and stable market for digital assets, boosting innovation and financial literacy. Ultimately, the government hopes to establish Kenya as a key player in the global digital finance world. The policy will provide the legal framework for this.
Looking Ahead
While details are still emerging, the draft policy signals a significant shift in Kenya’s approach to cryptocurrencies, moving from a position of caution to one of potential embrace and regulation.
