Kenya Prepares to Legalize Cryptocurrency in Bold Policy Shift

Kenya is now about to make the revolutionary move of legalizing cryptocurrencies. The Kenyan government, which was previously cautious about crypto risks, has opened up toward its potential.

While crypto was never banned in Kenya, authorities always warned against it, citing links with scams, cybercrimes, and even terrorism. But the introduction of new legislation marks a significant pivot toward acceptance and regulation.

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Treasury Cabinet Secretary John Mbadi recently emphasized Kenya’s status as a financial innovation hub in Africa. “The rise of Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs) has brought transformative opportunities to the financial system, both locally and globally,” Mbadi said in an interview with Standard Media.

Kenya ranks second in Africa, after Nigeria, for crypto adoption, with over $1.5 billion in Bitcoin holdings, equivalent to 2.3% of its GDP. Globally, it holds the 21st spot, thanks to high internet penetration and a large underbanked population.

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This shift comes after Kenya suspended Worldcoin in 2023 due to privacy concerns. Now, as the country looks to 2025, the focus is on fostering innovation while tackling cybercrime risks. “We’re committed to building a legal framework that balances opportunity and security,” Mbadi added.

Sahil Poudel

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