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Kenyan President’s Policy Shift Towards Cryptocurrency
Kenyan President William Ruto recently revealed a significant policy change in the country’s approach to cryptocurrency, appointing U.S.-based Bitcoin mining company Marathon Digital as a consultant. This move marks a departure from the previous stance held by institutions like the Central Bank of Kenya (CBK) regarding cryptocurrencies.
Marathon Digital’s Role in Kenyan Government
President Ruto announced this decision during the AMCHAM Business Summit, attended by notable figures like U.S. Secretary of Commerce Gina Raimondo and Kenya’s Investment and Trade Cabinet Secretary Rebecca Miano. Marathon Digital will collaborate with the National Treasury and the Energy Ministry to address the energy requirements for cryptocurrency mining.
Shift in Crypto Regulation Approach
President Ruto’s decision contrasts with the cautious approach taken by former CBK governor Patrick Njoroge, who had warned against crypto involvement. The current government is now exploring regulatory frameworks in collaboration with organizations like the Kenyan Blockchain Association.
Kenya’s Progress Towards Cryptocurrency Regulation
Efforts towards crypto regulation in Kenya include the formation of a multi-agency team by the government, which involves the central bank. The country is also considering the Capital Markets Bill, which could introduce taxation on cryptocurrency exchanges and wallets.
Concerns and Regulatory Measures
Regulators in Kenya have raised concerns about unlicensed virtual asset products, with a Central Bank risk assessment highlighting risks of money laundering and terrorist financing associated with virtual assets. The 2022 anti-money laundering report emphasized the need for regulatory measures, especially in dealing with virtual asset service providers.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
