Kenya Plans Legislation to Legalize Cryptocurrencies

Kenya's Treasury Cabinet Secretary John Mbadi announced plans to legalize cryptocurrencies, marking a shift from previous government warnings. Key points include:

Mbadi emphasized the need for a regulatory framework to harness opportunities and address risks like money laundering and fraud.
The government aims to create a legal structure to support Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs).
A draft policy on virtual assets was launched in December, seeking to establish a fair and stable market and promote innovation.
Historically, Kenya has maintained a cautious approach towards cryptocurrencies, with a warning from the central bank in 2015 that they are not legal tender.
In 2022, lawmakers considered a taxation law for crypto as ownership among Kenyans rose to approximately 8.5% according to a UN report.