Kenya will decide whether to supervise cryptocurrencies in a matter of weeks

The National Financial Planning Commission sent the Kenyan Finance Minister to investigate the current application of Kenyan cryptocurrency. So far, the trend of cryptocurrency applications has been growing, but there are no regulations. In a few weeks, he will submit a report to the parliament recommending to begin monitoring the cryptocurrency.

The Kenyan Finance Minister is responsible for investigating the current application of Kenya’s cryptocurrency. So far, applications have been growing, but there are no regulations. In a few weeks, he will submit a report to the parliament, suggesting that the cryptocurrency should be regulated.

Two weeks to make a decision

The African Business Daily reported on Wednesday that the Kenyan parliament gave Finance Minister Henry Rotich two weeks to decide whether cryptocurrency regulation is needed.

The National Financial Planning Commission asked Rotich about the application of Bitcoin in Kenya. Specifically, the committee asked “Why does the Ministry of Finance and the Central Bank of Kenya (CBK) allow people to risk entering unregulated cryptocurrency space without operating and taxation permits?” The news quoted Committee Chairman Joseph Limo as saying :

“We were surprised to find that even CBK did not know the lounges at Kenyatta University, the ATMs in the town, and a hotel in Nyeri that could conduct bitcoin transactions. There is still a bigger problem in Kenya. That’s because people trade billions of dollars in virtual space, but the Treasury has not yet approved the operation and taxation of virtual currency transactions like M-Pesa and bank transactions.”

When to start supervision

Rotich acknowledges that he has a great interest in cryptocurrencies and adds that he will study whether there are cryptocurrency exchanges in the country. So far, “I don’t know if someone is operating locally… but I will try to find out if there is a local exchange.”

He explained that the central bank will certify cryptocurrency exchanges and assess risks to determine whether they need regulation now or later. He asserts: “The cryptocurrency is booming, and we have to look at this development from the standpoint of a country. This is There is a need to find a delicate balance between supporting innovation and eliminating innovation.”

Parliament’s concerns about cryptocurrencies

Capital Business reported on Wednesday that Molo constituency Kimani Kuria wants to regulate cryptocurrencies such as Bitcoin because of the risk of digital currency.

Kuria said:

“Because cryptocurrency transactions are anonymous, it is easy to use by corrupt government officials to store funds. A multi-billion dollar person only needs to buy a few bitcoins to store in the system, and then he can go to another country. , redeem cash and continue to live.”

In response to questions raised by the National Fiscal Programme Committee, Rotich “has hesitated about the ability of the Kenyan government to regulate cryptocurrency transactions,” Rotich said. “Unlike other investment channels, cryptocurrencies are not regulated by any government agency. Because of its unregulated nature, if investors and companies have limited understanding of cryptocurrencies, they are easily exploited by hackers, terrorists and extortionists.”

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