Kenya sets up multy-agency group to regulate cryptocurrencies and digital assets

Kenya is establishing a multy-agency group to oversee cryptocurrencies and digital assets, as announced by Njuguna Ndungu, the National Treasury Cabinet Secretary. This move comes in response to the rise of virtual asset trading and online investment scams, prompting warnings from the Central Bank of Kenya (CBK) and other financial regulators against unlicensed financial products and services.

The newly formed group will be responsible for crafting regulations and monitoring both cryptocurrencies and the businesses involved in their trade. Kenya currently ranks among the top 5 countries in Africa for cryptocurrency activity. 

Notably, in December 2023, the National Assembly's committee approved the Capital Markets (Amendment) Bill, which introduces taxation on crypto exchanges and wallets, aligning them with traditional banking transactions.