Kenyan lawmakers have passed a bill to regulate digital assets, including cryptocurrencies, aiming to encourage investment in the sector by providing clear rules. The Virtual Asset Service Providers Bill was enacted last week, addressing concerns over the lack of regulations governing this emerging industry. This legislation would position Kenya alongside countries like South Africa as one of the few African nations with such laws, pending the President’s signature to make it official.
The bill designates the central bank as the licensing authority for stablecoins and virtual assets, while the capital markets regulator will oversee the licensing of crypto exchanges. This initiative comes as countries prepare for a rise in U. S. dollar-backed stablecoins, which may impact less developed economies. The anticipated legal clarity could lead to increased investment from major crypto platforms like Binance and Coinbase.
Kenya is recognized for its innovation in mobile financial services, such as the M-Pesa technology, which facilitates various financial activities for millions. The law draws on regulations from established practices in countries like the U. S. and Britain, aiming to balance growth with legal oversight.
With information from Reuters
