Kenya to legalize the use of Bitcoin and Cryptocurrency
Kenya looks set to embrace Bitcoin and Cryptocurrency after a recent policy draft to legalize digital assets
Kenya looks set to embrace Bitcoin and Cryptocurrency after a recent policy draft to legalize digital assets.
Following years of clamping down on virtual assets, Kenya has announced plans to open its borders to the asset class.
Per a recent disclosure from a local news outlet, Kenya is preparing legislation to allow the use of Bitcoin and cryptocurrencies.
The media cited a statement from John Mbadi, Kenya’s Treasury Cabinet Secretary.
Mbadi announced the policy shift on Friday, stating that the country plans to harness the potential of the cryptocurrency sector.
Mbadi stated that Bitcoin’s emergence has brought glaring innovations to the international monetary sector. He noted that the asset’s qualities as an investment tool, its seamless transacting ability, and anonymity are key traction points.
As a result, the Kenyan government has resolved to adopt the new technology and harness its untapped potential.
Mbadi disclosed that in December, Kenya drafted a national policy on virtual assets and their service providers to provide a regulatory framework for the new sector.
The policy will provide a market for cryptocurrencies in Kenya while addressing notable drawdowns associated with the nascent industry. Some include liability to usage for cybercrimes and its lack of customer protection.
Meanwhile, the policy shift trailed Kenya’s historical disdain for virtual assets. For context, the Republic’s central bank announced in 2015 that cryptocurrencies were illegal within its borders and banned transactions involving the assets.
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However, the East African country still imposed a 15% tax on crypto transactions. This came as residents bypassed sanctions to use the asset, with a United Nations report showing that 8.5% of Kenyans own digital assets.
Kenya’s move mirrors a global paradigm shift towards Bitcoin and cryptocurrencies. Countries are swiftly turning to the nascent technology, finally acknowledging its underlying value.
In September, Morocco drafted a bill to create a legal and regulatory framework for cryptocurrencies. The move was a significant step towards adopting Bitcoin in the country.
Other nations, such as the United States, Russia, and the European Union, have teased adopting Bitcoin as a strategic reserve asset.
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