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Crypto Policy: Kenyan Senate Ready to Engage Central Bank

News Feed - 2023-02-25 02:02:45

Crypto Policy: Kenyan Senate Ready to Engage Central Bank


The Kenyan Senate’s Information, Communication and Technology committee has said it is ready to engage the Central Bank of Kenya (CBK) and other stakeholders in shaping the country’s policy towards crypto assets and virtual asset service providers. According to the committee, such a policy helps govern the use of crypto assets in the country “to ensure Kenya harnesses the benefits of financial innovation while minimizing the risks.” Harnessing the ‘Benefits of Financial Innovation’


A Kenyan Senate committee recently said it has resolved to work with the Central Bank of Kenya (CBK) and other stakeholders in its bid to establish the East African nation’s policy towards virtual asset service providers (VASPs) and “the use of crypto assets in Kenya”


In a statement issued via Twitter, the Senate’s Committee on Information, Communication and Technology argued that the establishment of such a policy will help Kenya enjoy the benefits of innovation.


“While considering the response received from the CBK regarding the Committee’s inquiry on digital assets infrastructure in Kenya at Parliament Buildings, the Members of the Cmte emphasized the need to have a laid down policy that governs the Central Bank Digital Currency and crypto assets in the country to ensure Kenya harnesses the benefits of financial innovation while minimizing the risks,” the Senate tweeted.


Promoting the Adoption of Technology and Innovation Within the Financial Sector


Meanwhile, the Senate committee’s announcement comes two months after the Joint Financial Sector Regulators’ Forum (JFSRF) said it would consider creating a technical working group with a mandate recommending the establishment of a crypto regulatory framework.


As explained in the JFSRF’s joint communique issued on Dec. 16, 2022, the recommendations “will be subsequent to wide consultations and deliberations across the financial sector and other relevant stakeholders.” Communique on the 13th Joint Financial Sector Regulators' Board Meeting pic.twitter.com/E6Sa1Jzg1U


— Central Bank of Kenya (@CBKKenya) December 16, 2022



Besides the crypto-related recommendation, Kenya’s five-member regulators’ forum said it has also resolved to coordinate the development of a framework that promotes the adoption of emerging technology and innovations within the financial services sector. Doing this helps to “enhance effective regulation and supervision.”


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Tags in this story central bank digital currencies, central bank of Kenya, crypto assets, Joint Financial Sector Regulators’ Forum (JFSRF), Kenya Senate, Regulation, virtual asset service providers (VASPs)


What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Nigerian Central Bank Seeks New CBDC Tech Partner — Bank Urged to Improve E-Naira User Experience AFRICA | 11 hours ago Nigerian Crypto Payment Gateway Fluidcoins Acquired by Seychelles-Based Crypto Exchange AFRICA | 7 days ago


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