Kenya is a prime ground for the growth of cryptocurency. However, this will only be realized if the government takes charge and offers directions and guidance. Apparently, the country’s Capital Market Authority seems to be working on the same.
The authority has proposed the formation of a special unit that will be tasked with dealing with all issues that emanate from the growing popularity of digital currencies. The proposal is a good one and points the fact that the country is getting ready to fully embrace and be part of the wave of digital currency that has swept across Europe, the U.S and Asia.
In the proposal the authority, which is tasked with regulating capital markets has indicated that the new unit will be a branch and will work in harmony with the relevant regulators such as the Capital Market Authority itself and the Central Bank of Kenya. The unit will explore the challenges that come with adopting the cryptocurrencies in the country’s economy.
The idea of cryptocurrencies is not new in Kenya. Bitcoin (BTC) and Altcoins have in the recent past made an impact in the country. Things seem to be moving and regulators seem to be coming into action to move the gains made so far to another level as well as offer some form of regulatory framework. So far the Capital Authority has acknowledged that something has to be done in the sector and one way of doing this is setting up a body to monitor the emergency and development of digital currency in the country.
These proposals are contained in the Capital Market Soundness Report under the theme ‘Staying the course in a Turbulent World of Increasing Protectionism’, which was released recently. In the report, CMA say that there is need for financial regulators to come up with means of handling the issues and challenges that come with the emergency and development of cryptocurrencies and Initial Coin Offerings (ICOs). According to the CMA, the proposed taskforce could be drawn from financial sector regulators.
In many parts of the world, the emergency of cryptocurencies was been approached with a lot of caution and financial regulators have been up in action to try and monitor its impact on the traditional currency and the economy at large. The reception of digital currencies had been different from country to country; with a majority embracing it with cautions while a few prohibiting it altogether. Early this year, the Capital Market Authority warned investors against participating in ICOs noting that it had not approved any such offerings.