March 28, 2024

Bill to Regulate Cryptocurrencies Equal to Securities Submitted to Parliament in Kenya

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Bill to Regulate Cryptocurrencies Equal to Securities Submitted to Parliament in Kenya

Kenyan lawmakers have introduced a bill that would require cryptocurrencies to be regulated as securities and require cryptocurrency issuers to comply with a number of requirements.

Kenyan economist and blogger Amboko Julians(Amboko Julians) shared on Twitter screenshots of the bill that Kenyan lawmaker Abraham Kipsang Kirwa was working on. The document implies that blockchain and cryptocurrencies will be under the supervision of the Kenya Capital Markets Authority (CMA). The draft law expands the definition of “securities” to include digital assets.

For legal work in the country, cryptocurrencycompanies are required to obtain a CMA license. Residents of Kenya who have received any licenses to trade digital assets must also be registered with the CMA. In addition to registration, they are required to keep records of all transactions in crypto assets and pay taxes on any profits. If the bill is passed by the Kenyan Parliament, cryptocurrency companies will have six months to obtain a CMA license.

Persons applying for a permitTo operate in the country, it is necessary to prove to the regulator that their cryptocurrency has been developed for at least two years. The bill also states that a cryptocurrency product must be tested on a customer base of at least ten thousand users. In addition, Kenyans who own or trade digital assets must disclose the amount of cryptocurrencies they hold, as well as the timing of their acquisition and sale.

Let us recall that last year the Central BankKenya has banned commercial banks from working with two cryptocurrency startups not registered in the country. At the same time, the central bank is actively exploring the possibility of launching its own digital currency to improve international payments.