Kenyan Treasury Minister John Mbadi has announced plans for a draft policy aimed at regulating virtual assets and virtual asset service providers.
Speaking on Friday, Mbadi said the proposed framework seeks to capitalize on the opportunities offered by cryptocurrencies while addressing the risks associated with them, 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 empowers paraprofessionals and Internet service providers To reap the benefits.
In December, Kenya He presented a draft policy focused on regulating virtual assets and service providers in the cryptocurrency sector. According to Mbadi, the policy aims to promote a fair, competitive and stable market for industry participants while encouraging innovation and financial literacy.
Mbadi also pointed to the global trend towards regulating cryptocurrencies, citing examples from Morocco, the United States and Russia.
Africa is home to a growing number of fintech companies that provide payment solutions to the region's largely unbanked population. The Kenyan framework will adopt flexible regulatory approaches to align with international standards and support this growth.
Financial Action Task Force urge Kenya in 2024 to strengthen anti-money laundering efforts and enhance counter-terrorist financing measures. The FATF has put Namibia on its watch list, removed Uganda, and continued heightened scrutiny of Kenya, South Africa and Nigeria – a move that could impact Kenya's trade and investment costs.
If adopted, the policy could position Kenya as a major player in digital finance by protecting consumers and ensuring compliance with global regulatory standards.
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