Kenya Prepares To Legalize The Use Of Crypto Assets For Transactions

JAKARTA - A change in a country's attitude towards crypto assets, aka cryptocurrencies, has become a natural thing lately. Especially after Donald Trump was elected president, it also changed the attitude of the US from being hostile to crypto to being friendly towards Bitcoin cs. This was followed by other countries, one of which was Kenya.

Recently, the Kenyan government was preparing to adopt cryptocurrencies. In fact, several years earlier Kenya banned crypto assets and finally decided to legalize crypto assets.

Kenya's Finance Minister, John Mbadi, announced that the country will soon officially legalize the use of crypto assets by changing policies that previously suspended the circulation of digital currencies.

This decision was taken after the massive use of cryptocurrencies by the public, even though the ban has been implemented. The use of crypto in Kenya is no longer unstoppable, because many Kenyans use cryptocurrencies for cross-border transactions, savings and investments. This is mainly driven by high inflation and limited access to traditional banking services.

In his statement, Mbadi underlined the importance of building a clear regulatory framework to ensure the crypto sector can develop safely. The Kenyan government does not want to hinder innovation, but creates a balanced and fair market for digital currencies. Through this policy, Kenya aims to attract more investment, while maintaining consumer protection and fighting money laundering and financing terrorism.

Kenya's stance is in line with the global trend, in which countries such as Morocco, the United States, Britain, and Russia have also begun to adopt clearer regulatory policies for cryptocurrencies. The policy will prioritize consumer protection and prevent crypto abuse for illegal activities.

In addition, this policy will also prioritize innovation, as was done by the popular digital money service M-Pesa which has made Kenya a leader in the mobile finance sector.

However, the Kenyan government remains aware of potential risks in the crypto sector, such as market volatility and potential abuse. Therefore, they are committed to managing this risk carefully, maintaining state financial stability, while encouraging innovation in the digital financial sector.