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News

Kenyan Treasury Expects to Legalize Crypto Despite Money Laundering Risks

January 11, 2025 - Around 2 mins mins to read

Key Points:

  • Kenyan Treasury is shifting from its earlier ban on cryptocurrencies with proposed legislation to create a regulated market.
  • Kenya’s pivot to regulation follows international pressure from the FATF and growing domestic crypto adoption.
According to The Standard, the Kenyan Treasury is working on legalizing cryptocurrencies, a major shift from the ban imposed on them.
Kenyan Treasury Expects to Legalize Crypto Despite Money Laundering Risks

Read more: Kenya Crypto Tax System to Enable Real-Time Transaction Monitoring

Kenyan Treasury to Legalize and Regulate Cryptocurrencies

Kenyan Treasury Cabinet Secretary John Mbadi made the announcement on January 10, citing the need for a regulatory framework to tap into the benefits of virtual assets while mitigating the risks associated with them.

“The emergence and growth of Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs) have given rise to innovations in the local and international financial system with dynamic opportunities and challenges”, Mbadi stated.

The bill was to institute a controlled market for both cryptocurrencies and VASPs. The move follows a draft policy from December 2024 that aims to stabilize the market while ensuring financial literacy and innovation.

From Crypto Ban to Regulation

The Kenyan pivot to regulation comes amidst international pressure. In 2024, the Financial Action Task Force called on Kenya to improve its anti-money laundering measures and address concerns about the financing of terrorism.

Historically, Kenya has been very cautious regarding cryptocurrency. In 2015, the central bank issued a public notice against their use, stating that they were not legal tender and barred crypto-based money remittance services. Despite this, a 2022 UN report showed that almost 10% of Kenyans hold cryptocurrency.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

FATF

Kenya

Kenyan Treasury

VASPs

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Harold

With a passion for untangling the complexities of the financial world, I’ve spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. “The financial markets are a fascinating puzzle,” I often say, “and I love helping people make sense of them.” That’s what drives me to bring clear and insightful financial journalism to the readers of Coincu.