Kenya is getting ready to officially allow cryptocurrencies. This big change comes after the International Monetary Fund (IMF) suggested Kenya update its crypto rules to match global standards.
A New Approach to Crypto Regulation
The Kenyan government is asking the public for their thoughts on new crypto rules. These rules are based on two main documents:
- A National Policy on Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs): This document will guide how virtual assets and the companies that handle them are managed, aiming for a fair and efficient market.
- The Virtual Asset Service Providers Bill, 2025: This bill will outline who regulates crypto companies and what licenses they need. It will also focus on preventing things like money laundering and terrorist financing.
Kenyans have until January 24th to share their opinions on these proposals.
Reversing Course on Crypto
Back in 2015, Kenya’s central bank warned against using cryptocurrencies and banned them as legal tender. But despite this, crypto has remained popular, with around 2.8 million Kenyans owning digital assets. This new move shows the government is ready to acknowledge the potential of the crypto industry.
John Mbadi, the Cabinet Secretary for Treasury & Economic Planning, explained this shift. He noted that cryptocurrencies and related businesses have brought both opportunities and challenges to the financial system. While acknowledging risks like fraud, he believes that good regulations can manage these issues.
IMF’s Influence
This change in Kenya’s stance follows advice from the IMF. The IMF recommended that Kenya create clear crypto laws and improve consumer protection through better financial education.
The global crypto market is currently valued at around $3.21 trillion.
