Kenya Paves Way for Digital Asset Regulation with New Law
Kenya's parliament has passed the Virtual Asset Service Providers Bill to regulate digital assets like cryptocurrencies. This move aims to attract investments and establish clear regulatory frameworks. The bill designates the central bank and the capital markets regulator as licensing bodies, potentially positioning Kenya as a key player in Africa.
Kenya is stepping into the realm of digital asset regulation with lawmakers passing a bill to regulate cryptocurrencies. On Monday, a senior parliamentarian highlighted this move as a pivotal step towards boosting investment in the sector by clearly defining the rules for the burgeoning industry.
The National Assembly passed the Virtual Asset Service Providers Bill last week, announced Kuria Kimani, the head of the finance committee. This bill is designed to address the critical issue of lacking regulation in the digital asset space. Once signed into law by President William Ruto, Kenya will join South Africa as one of the few African nations with such regulations.
The legislation positions the central bank as the authority for licensing stablecoins and other virtual assets, while crypto exchanges will fall under the jurisdiction of the capital markets regulator. This development could attract major cryptocurrency exchanges and increase investment, reflecting Kenya's ongoing innovation in financial technology, notably from facilitating mobile-based financial services like M-Pesa.
(With inputs from agencies.)
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