Kenya is set to legalize virtual assets, marking a significant shift in the country’s financial landscape. Despite a longstanding ban, cryptocurrency usage has thrived underground. The government now aims to harness the benefits of digital assets through a robust regulatory framework. This move is expected to drive economic growth and establish Kenya as a significant player in the global digital finance ecosystem.
The draft policy seeks to establish a fair and competitive market for cryptocurrencies while addressing risks like money laundering and consumer fraud. It draws inspiration from other jurisdictions and aims to promote innovation while ensuring regulatory oversight. The policy also seeks to mitigate risks through domestic and international cooperation, compliance frameworks, and enhanced financial literacy.
