Hello friends
Today I'll discuss about the current scenario of crypto currency regulation of in Kenya. As we all are aware of the increased popularity of Bitcoin and other cryptocurrencies worldwide including Kenya. But regulation of the government does not exist like most of other countries. However Kenyan Parliament is calling for a decision from the Kenyan Finance Minister to regulate or to ban crypto within next two weeks. Now the question is- Should Kenya ban or legalize cryptocurrencies?
As per the report of Business Daily Africa on July 3 , the National Financial Planning Committee of the Kenyan Parliament has found that a large number of Kenyan deal with crypto currencies. And the involved institutions have no licenses to trade in Bitcoin and other crypto. Hence profits from these crypto transactions are also not taxed.
Finance Minister knows nothing
In December 2015, the Kenyan Central Bank (CBK) issued a notice for warning the public not to use virtual currencies. As per the recent findings of National Financial Planning Committee it is evident that the population was apparently very little impressed by this warning. The committee then asked Treasury Secretary Henry Rotich and Kenyan Central Bank (CBK) that why the government did not take any action towards regulation yet. The committee is also surprised to find that neither Rotich nor the CBK had any knowledge of cryptocurrency trading in their own country.
Since the beginning of 2007 Kenyans have been able to use the M-Pesa system to make money transfers and cashless payments via mobile phones without having to have a regular bank account. Using so-called M-Pesa agents, users can make cash deposits and withdrawals on an electronic balance.
Promote or kill innovation?
On July 3, Rotich expressed his concern for the instability or volatility of Bitcoin and how it is difficult to regulate. He also pointed out that these cryptocurrencies are at its early stage. He also added that finding a balance between fiat currency and virtual currency is also a matter of concern.
Parliament has now given the finance minister two weeks to decide whether cryptocurrencies can become legal tender in the country or not.
It will be interesting to see the decision of Kenyan government and also to view its effect on our cryptocurrency market. Many believe that cryptocurrency can help the African nations to grow its economy. So friends what you all think????
