Kenya’s Government Moves Toward Crypto Legalization and Regulation With New Draft Policy

Kenya’s government is making moves to legalize and regulate crypto.

The National Treasury of Kenya released a draft policy last month outlining the broad strokes of a potential digital asset regulatory framework.

John Mbadi Ng’ongo, the cabinet secretary for the National Treasury and Economic Planning, says in a forward to the policy that the Kenyan government wants to “leverage opportunities” presented by crypto and virtual asset service providers (VASPs) while managing the sector’s risks.

“This policy guides the establishment of a sound legal and regulatory framework providing the fundamental foundation of a fair, competitive, and stable market for VAs and VASPs with the aim of fostering innovation, enhancing financial literacy, and ensuring sound risk management. The principal goal of the policy is to cement Kenya as a major player in the global digital finance ecosystem.”

The draft policy represents a stark change from the Kenyan government’s previous approach to the sector. In 2015, the country’s central bank issued a notice discouraging the public from buying crypto, noting that digital assets like Bitcoin (BTC) were not legal tender and didn’t carry government protections.

Despite the lack of regulation, the Kenyan news outlet The Standard reports there’s been “widespread public use” of crypto in the country in unregulated spaces.

 

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