Kenya Takes Strides Towards Cryptocurrency Regulation
Kenya’s crypto adoption momentum culminated in December 2023 when the Kenyan National Assembly’s committee approved the Capital Markets Bill. If passed into law, this bill would introduce taxation on cryptocurrency exchanges and wallets, mirroring the taxation framework applied to traditional banking transactions.
On April 23, NTV Kenya reported establishing a multi-agency working group tasked with developing rules and oversight for crypto, also known as virtual assets, and the entities dealing with them, such as Virtual Asset Service Providers
Kenyan National Treasury Cabinet Secretary Prof. Njuguna Ndung’u disclosed the formation of this group to the National Assembly. He cited concerns raised by regulators regarding unlicensed virtual asset products and the findings of a Central Bank risk assessment. This assessment highlighted the risks of money laundering and terrorist financing associated with virtual assets.
Kenya’s 2022 anti-money laundering report further highlighted the need for regulatory measures, identifying virtual assets and virtual asset service providers as areas requiring attention. Additionally, Kenyan authorities uncovered suspicious M-Pesa withdrawals totaling at least $20 million in 2023, linked to the now-suspended iris-scanning project Worldcoin
