Kenya’s Treasury Cabinet Secretary John Mbadi has announced plans for a draft policy aimed at regulating virtual assets and virtual asset service providers. Speaking on Friday, Mbadi said the proposed framework seeks to leverage the opportunities presented by cryptocurrencies while addressing associated risks, including money laundering, terrorism financing, and fraud, according to The Standard. Mbadi said the Kenyan Government is committed to creating a legal and regulatory framework that will enable VAs and VASPs to reap the benefits. JUST IN: 🇰🇪 Kenya to legalise Bitcoin and crypto with new legislation – Kenya Treasury Secretary pic.twitter.com/gcfhBmJCTn — Bitcoin Archive (@BTC_Archive) January 10, 2025 In December, Kenya introduced a draft policy focused on regulating virtual assets and service providers in the cryptocurrency sector. According to Mbadi, the policy aims to foster a fair, competitive, and stable market for industry participants while promoting innovation and financial literacy. Mbadi also pointed to the global trend toward regulating cryptocurrencies, citing examples from Morocco, the United States, and Russia. You might also like: Genius Group buys $5m more in Bitcoin, totaling treasury to $35m Africa is home to a rising number of fintech unicorns that provide payment solutions to the region’s largely unbanked population. Kenya’s framework will adopt flexible regulatory approaches to align with international standards and support this growth. The Financial Action Task Force urged Kenya in 2024 to enhance its anti-money laundering efforts and strengthen measures against terrorism financing. The FATF placed Namibia on its watchlist, removed Uganda, and maintained heightened scrutiny on Kenya, South Africa, and Nigeria — a move that could impact Kenya’s trade and investment costs. If adopted, the policy could position Kenya as a major player in digital finance by safeguarding consumers and ensuring compliance with global regulatory standards. You might also like: BNB price ignores the crypto crash: could it surge 70%?
