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Kenya’s move represents a significant policy shift from their previous warnings about the crypto industry.
By Francisco Rodrigues, Camomile Shumba|Edited by Danny Nelson
Updated Jan 10, 2025, 5:56 p.m. UTCPublished Jan 10, 2025, 5:53 p.m. UTC
What to know:
- Kenya is preparing legislation to legalize cryptocurrencies.
- Their goal is to capitalize on the potential benefits associated with the industry while mitigating fraud, money laundering, and terrorism financing risks.
Kenya’s Treasury Cabinet Secretary John Mbadi has said the country is preparing legislation to legalize cryptocurrencies, a shift from the government’s previous warnings against the industry.
“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,” Mbadi said according to local news outlet The Standard.
Mbadi stressed a need for a regulatory framework to both capitalize on the potential benefits of the industry while mitigating the risks posed by money laundering, terrorism financing and fraud.
“The Government of Kenya is committed to creating the necessary legal and regulatory framework in order to leverage opportunities presented by VAs and VASPs while managing the reluctant risks,” Mbadi said.
Kenya launched a draft policy on virtual assets and virtual asset service providers in December. The draft policy aims to establish a “fair, competitive and stable market” for cryptocurrency industry players and foster innovation and financial literacy, Mbadi said.
Kenya has historically kept a cautious stance toward the cryptocurrency industry. In December 2015 the country’s central bank issued a public notice warning against cryptocurrency use, stating that these assets weren’t legal tender in the country and no entity was licensed to offer money remittance services using crypto in Kenya.
Fast forward to 2022 and lawmakers in the country started weighing on whether to move ahead with a law to tax crypto as the industry kept on growing in the country. A United Nations report at the time showed roughly 8.5% of Kenyans owned cryptocurrencies.
CoinDesk did not hear back from Kenya’s Treasury before press time.
Francisco is a reporter for CoinDesk with a passion for cryptocurrencies and personal finance. Before joining CoinDesk he worked at major financial and crypto publications. He owns bitcoin, ether, solana, and PAXG above CoinDesk’s $1,000 disclosure threshold.
Camomile Shumba is a CoinDesk regulatory reporter based in the UK. Previously, Shumba interned at Business Insider and Bloomberg. Camomile has featured in Harpers Bazaar, Red, the BBC, Black Ballad, Journalism.co.uk, Cryptopolitan.com and South West Londoner.
Shumba studied politics, philosophy and economics as a combined degree at the University of East Anglia before doing a postgraduate degree in multimedia journalism. While she did her undergraduate degree she had an award-winning radio show on making a difference. She does not currently hold value in any digital currencies or projects.
