Kenya: Technical Assistance Report-Crypto Regulation and Legislation
Technical Assistance Reports, January 8, 2025
Source details
- Canonical URL
- Kenya: Technical Assistance Report-Crypto Regulation and Legislation
Other formats
Bibliographic details
- Published: January 8, 2025
- Series: Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798400298233.019
Executive summary and scope
- Report outlines the current state and future objectives for regulating crypto assets in the Republic of Kenya.
- Prepared at the request of Kenya's Capital Markets Authority and involved an analysis of crypto-asset activities and the related regulatory framework.
- Emphasis on mitigating risks and supporting market integrity while fostering innovation and protecting consumers.
Major findings
- Need for a clear legislative framework with specific definitions and classifications of crypto assets.
- Need for effective inter-agency cooperation across relevant authorities.
- Importance of continuous market monitoring to identify emerging risks and market developments.
- Consumer protection gaps that require increased financial literacy and regulatory clarity.
- Authorities have undertaken diligent efforts to guide the public but require a formal regulatory framework to reinforce those efforts.
- The framework should consider the unique challenges and opportunities within Kenya's crypto market and leverage international best practices.
Policy recommendations and priorities
- Establish a clear legislative framework that:
- Provides specific definitions and classifications of crypto assets.
- Is robust, transparent, and capable of fostering innovation while protecting consumers and maintaining financial stability.
- Strengthen inter-agency cooperation and cross-sectoral coordination.
- Implement continuous market monitoring and risk assessment mechanisms.
- Enhance consumer protection through:
- Increased financial literacy initiatives.
- Regulatory clarity for market participants and the public.
- Leverage international best practices to enhance the effectiveness of Kenya's regulatory approach.
- Consider regulatory tools such as a Regulatory Sandbox and focused review of Virtual Asset Service Providers Legislative Review (as indicated in keywords and scope).
Subject areas and keywords
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT); Capital markets; Crime; Financial institutions; Financial markets; Securities; Securities markets.
- Keywords (as listed): Anti-money laundering and combating the financing of terrorism (AML/CFT), Blockchain, Capital markets, Caribbean, CMA Policy paper, Consumer Protection, Cross-sectoral Cooperation, Crypto Regulation, entities in Kenya, Financial Literacy, Financial Stability, Global, IMF executive directors, IMF's Monetary, Kenya, Market Analysis, Market Integrity, private sector entity, Regulatory Sandbox, request of the Capital Markets Authority, Risk Assessment, Securities, Securities markets, Tokenization., Virtual Asset Service Providers Legislative Review.
Content in this bundle
- tarea2025001-print-pdf