Kenya has two weeks to decide whether to regulate cryptocurrencies

The Secretary of the Treasury of Kenya has the responsibility of investigating the current state of the adoption of cryptocurrencies in the country, which until now has been growing without regulations. Within a couple of weeks, you should present your report to parliament and advise how to proceed to regulate cryptocurrencies.

The parliament of Kenya reportedly handed Treasury Secretary Henry Rotich two weeks to decide whether cryptocurrencies should be regulated, Business Daily Africa reported Wednesday.

The National Planning and Finance Committee asked Rotich about the use of bitcoin in the country. Specifically, the committee asked "why the Treasury and the Central Bank of Kenya (CBK) allowed people to venture into the unregulated cryptocurrency space without a license to operate and tax," the news site quoted the committee chairman as saying. , Joseph Limo. , saying:

"We are surprised to hear that even CBK does not know that there is a room at Kenyatta University, an ATM in the city and a hotel in Nyeri that operates with bitcoins. There is a bigger problem in Kenya since people are negotiating billions in the virtual space, but the Treasury has not authorized or taxed it like the M-Pesa trade and banking transactions. "

Rotich admitted that there is a lot of interest in the cryptocurrency, adding that he will investigate if there are encryption exchanges operating in the country. So far, "I do not know people who operate locally. But I'll try to find out if we have local exchangers, "the publication quoted him.

After explaining that the Central Bank will identify any local cryptographic exchange and evaluate its risks to see if the regulation is necessary now or later, he said:

"The cryptocurrency problem is evolving and we can take a position as a country. This is a delicate balance between supporting innovation and killing it. "

Capital Business also reported on Wednesday that "Molo MP, Kimani Kuria, wants cryptocurrencies like bitcoins to be regulated due to the risks associated with digital currencies."

By citing that "cryptocurrency transactions are anonymous," Kuria says, "they can be easily used by corrupt government officials who seek to hide fraudulent money."

Then he proceeded to describe: "A person who has billions in money wrongly acquired just needs to buy several bitcoins that can store value in a system that lacks centralized control. Then he could go to another country, get his money back and move on with his life. "

In answering a question from the National Planning and Finance Committee, Rotich "hesitated to answer about the government's ability to monitor and regulate cryptocurrency transactions conducted within Kenya's borders," the media reported. However, he elaborated:

"Unlike other forms of investment, cryptocurrencies are not regulated by any government authority. Due to its unregulated nature, limited understanding of the cryptocurrency and the influx of companies participating in it, is prone to abuse by criminals, terrorists and extortionists who take advantage of unregulated space. "