Kenyan Crypto Governance Initiative: Forming the Blueprint for Digital Currency Regulations

The Kenyan government has formed a multi-agency technical working group, which includes the Central Bank of Kenya, to create regulations for the cryptocurrency industry, particularly targeting Virtual Asset Service Providers (VASPs). 

This initiative comes amid concerns about potential grey listing by the Financial Action Taskforce (FATF) due to the country’s lack of crypto regulation. The working group’s task is to draft rules for monitoring and controlling VASPs and virtual assets’ use, aiming to combat online marketing of virtual assets and fraudulent investment schemes. Recent investigations revealed irregular injections of funds into the economy through unapproved VASPs like Worldcoin, prompting stricter oversight. 

The government hopes these measures will safeguard investors and curb crypto-related scams, addressing the growing interest in cryptocurrencies among Kenyans.

Clever Robot News Desk 29^th April 2024