Thanks to a proposed law, cryptocurrencies are on the verge of being legalized in Kenya. Indeed, the country is currently working to establish a legal framework for this asset class and the companies in the ecosystem.
Kenya will create a legal framework for cryptocurrencies
On the African continent, cryptos have an ambiguous position, both shunned by certain governments and adopted by populations for the alternative they offer to traditional payment systems. In Kenya, cryptocurrencies are on the verge of obtaining national recognitionby means of a bill.
Last December, the National Treasury already published a bill called “Draft National Policy on Virtual Assets and Virtual Asset Service Providers», to propose a legal framework for digital assets.
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John Mbadi Ng'ongo, Secretary of State for the Treasury, said:dynamic opportunities and challenges» brought by this ecosystem, specifying that the subject is taken to heart by the government:
The Government of Kenya is committed to creating the necessary legal and regulatory framework to take advantage of the opportunities presented by AVs [actifs virtuels] and the VASP [fournisseurs de services sur actifs virtuels] while managing reluctant risks.
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This position thus denotes with the warning of the Central Bank in 2015, which dissuaded the country's citizens from investing in cryptocurrenciesrecalling that they were not legal tender and qualifying them as being “largely untraceable and anonymous“.
However, let us take a step back and remember that at that time, this ignorance was shared by most countries. In France, in 2018, senator Jérôme Bascher considered, for example, that with a public key, “might as well leave the door open», while Bruno Le Maire, although supposed to be Minister of the Economy, estimated by an ingenious calculation that if BTC went from 20,000 dollars to 6,500 dollars, savers would lose “3 times their stake“.
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Coming back to Kenya, if the bill in question does not mean that cryptocurrencies will be legal tender in the country, it is interesting to see that the subject is being taken seriously. With legal recognition, this will give legitimacy to the ecosystem in the country, which could encourage local adoption.
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Source: Bill
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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