Kenya officially began preparations to legalise cryptocurrency trading, including Bitcoin, as part of a significant policy shift.
Treasury Cabinet Secretary John Mbadi confirmed the move, announcing plans to draft legislation for virtual assets and service providers.
Mbadi emphasised the opportunities and challenges posed by virtual assets, stating that Kenya aimed to harness the industry’s potential while addressing risks such as fraud, money laundering, and terrorism financing.
“The Government of Kenya is committed to creating the necessary legal and regulatory framework in order to leverage opportunities presented by VAs and VASPs while managing the reluctant risks,” he stated.
The country previously introduced a draft policy on cryptocurrency regulation in December, which is under review. The proposed bill seeks to establish a fair, competitive, and stable market for cryptocurrency traders, marking a shift from Kenya’s earlier stance.
In 2015, the Central Bank of Kenya issued a notice warning against cryptocurrency use, prohibiting it as legal tender. Despite the ban, a 2022 UN report revealed that nearly 10% of Kenyans held cryptocurrencies, prompting lawmakers to reconsider regulation.
Kenya may soon join African nations such as South Africa and the Central African Republic, which have already legalised cryptocurrency operations.
