Kenyan government collaborates with consultant to review cryptocurrency regulations

In a significant shift from the Central Bank of Kenya's previous stance on digital currencies, the Kenyan government has welcomed a consultant to reassess the cryptocurrency landscape. President William Ruto announced that Marathon Digital Holdings has been engaged to consult with the National Treasury and Energy Ministry on the matter.

President Ruto's meeting with the MARA team at the 2024 AMCham Business Summit in Nairobi focused on exploring how digital asset data centers could drive energy development in the region and enhance trade relations between the US and East Africa.

Kenya has taken proactive steps by establishing a multi-agency group to oversee cryptocurrencies, responding to the surge in virtual asset trading and online investment scams. This move follows warnings from the Central Bank of Kenya (CBK) and other financial regulators against unlicensed financial products and services.

The newly formed group will play a pivotal role in formulating regulations and supervising both cryptocurrencies and the entities engaged in their trade. Kenya currently stands as one of the top 5 countries in Africa for cryptocurrency activities.

In a notable development, the National Assembly's committee approved the Capital Markets (Amendment) Bill in December 2023. This bill introduces taxation on crypto exchanges and wallets, aligning them with traditional banking transactions, marking a significant step towards regulating the cryptocurrency sector in Kenya.