The International Monetary Fund (IMF) has recommended that Kenya develop clear rules for its cryptocurrency market.
This step is necessary to protect consumers, prevent money laundering, and stop the misuse of digital assets for illegal activities.
The report published on January 8 follows a request from Kenya’s Capital Markets Authority (CMA) for support in regulating the crypto industry.
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Discussions held in Nairobi revealed that Kenyan lawmakers are uncertain about how to regulate these new digital assets. Therefore, the IMF has urged Kenya to align its crypto laws with international standards.
The IMF stressed compliance with international guidelines, such as the Bali Fintech Agenda, the Financial Action Task Force (FATF) rules for preventing money laundering, and the Financial Stability Board’s (FSB) global standards for crypto regulation.
Furthermore, the IMF outlined several steps to help Kenya close the gaps in the nation’s current system.
Short-term actions, to be completed within six to twelve months, include gathering more data on the crypto market, improving cooperation among regulators, and clarifying which activities and players should be regulated.
Medium and long-term goals, spanning twelve months or more, involve creating legal and licensing frameworks, boosting resources for monitoring the market, and fully aligning Kenya’s regulations with global standards.
According to the IMF, Kenya’s current laws are outdated and were designed for traditional financial markets. These regulations have limited reach and cannot effectively oversee the crypto industry.
Meanwhile, China recently introduced stricter foreign exchange regulations. What are the rules? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
