Kenya Drafts Law to Regulate Crypto!

Cryptocurrencies have been around for more than a century, but they were unregulated. However, currently the governments of different countries are trying to control them in the interior of the country by applying different laws and policies. For example, recently the African country Kenya is developing new regulatory policies for crypto. That is why the Central Bank of Kenya is drafting legislation to regulate cryptocurrencies in the country, marking a shift from the cautionary warnings previously issued by the African country's Central Bank of Kenya (CBK). Digital currencies are being brought under this new law so that these digital currencies can be managed under the same specific laws and according to the specific regulatory framework within the country.

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Kenya has drafted a new proposal titled National Policy on Virtual Assets and Virtual Asset Service Providers. Along with this new proposed draft now comes this new announcement. The country's regulatory authorities have even said that the country's government is committed to creating the necessary legal and regulatory framework for cryptocurrencies. We know that cryptos are notorious for volatility. And so that these unstable currencies can be made in the stable market and also presented in a fair and competitive manner, a draft of this new law has been proposed in the country. The draft law has been proposed so that through this they can provide protection to the internal citizens of their country or their nationals and keep them away from all kinds of unethical activities.

Cryptocurrencies in exchange or transactions are highly confidential where who is sending to whom is largely confidential. And exploiting this opportunity, a class of fraudsters engage in activities like money laundering, terror financing and consumer protection issues. The new draft therefore creates a new framework to address risks such as money laundering, terrorist financing and consumer protection issues. Their main objective is to prevent these problems and guide the development of fair, competitive and stable markets in their countries. For that they are expected to approve the appropriate law.

But currently the draft they have made is very much recommended. However, this is yet to be implemented and the draft proposal has been kept open for public feedback till January 24. Earlier, two African countries like South Africa and Nigeria have implemented crypto regulations in countries by implementing such laws in advance. And if the law is approved in the country, Kenya could join the ranks of powerful countries like South Africa and Nigeria. Cryptocurrency is not completely banned in Kenya.

Many Kenyan citizens are involved with crypto. Although there are many crypto users among the country's citizens, the country's Central Bank of Kenya long ago issued a public notice warning its citizens against using this digital currency. In particular, concerns were raised in 2015 with warnings that these digital currencies lacked legal protections and could be used to engage in illegal activities. However, if this new law is implemented, it will play a significant role in preventing illegal activities and protecting digital currency as well as stabilizing it. To know more about this, you can read this news .