Experts said that regulatory uncertainty and the slow spread of cryptocurrency are still the main obstacles to the growth of Kenya’s digital currency market. They also asserted that if there is no rapid regulation (which they believe will accelerate the adoption of digital currencies), the Kenyan sector will remain open to fraud.
Kenya’s slow embrace of crypto, exchange representatives point out the need for legislation
According to local media reports, George Mwakisha, Business Development Manager of Binance Kenya, said that if the country takes action to pass relevant legislation, the country can fully enjoy the benefits of digital currency. Mwakisha is said to believe that the lack of clear laws on cryptocurrencies makes the country vulnerable to fraud.
At the same time, Luno Crypto Exchange Kenya Country Manager Apollo Sande also agreed with the views of Binance Kenya representative. Sande stated that one of the benefits of regulating cryptocurrency is that it may facilitate cross-border remittances into the country. The country manager added that the adoption of cryptocurrency will also make Kenya “easier to enter the international market”.
Kenyans are on the boat, the bank is not sure
Kenyan encryption experts made the above remarks following recent reports that the country and five other East African countries are exploring the possibility of launching regional digital currencies. The country’s blockchain and artificial intelligence working group has already recommended the use of cryptocurrency in Kenya in its 2019 report, noting that global trends are “inevitable”.
As previously reported by Bitcoin.com News, Kenya now has one of the largest P2P Bitcoin transactions on the African continent.
According to the report, despite the suggestions made by Kenyans and the obvious adoption of crypto assets, the acceptance of cryptocurrencies by the Central Bank of Kenya (CBK) has slowed due to “endless discussions on the development of regulations.”
Do you think CBK’s supervision of digital currencies will help accelerate adoption in Kenya? Tell us what you think in the comments section below.
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