“Obsolete and limited”. This is what the experts criticize International Monetary Fund (IMF) to Kenyan regulations on cryptocurrencies at the end of their work. In order to protect consumers and effectively combat money laundering and terrorist financing, the international institution has just published technical assistance for the country’s decision-makers. There Capital Markets Authoritythe national regulator, had itself made this request, we will now have to implement all of the IMF recommendations that we will see together. Direction Nairobi to take stock.
- The International Monetary Fund has criticized Kenyan regulations on cryptocurrencies, deeming them outdated and limited.
- The IMF advised Kenya to create a clear regulatory framework to protect consumers and combat money laundering and terrorist financing.
The International Monetary Fund (IMF) provides some regulatory advice to Kenya…
The first conclusion of the work of the FMI is clear and it is expressed as follows:
“The IMF advises Kenya to create a clear and predictable regulatory environment for the cryptocurrency market to protect consumers and address Anti-Money Laundering (AML) and Anti-Money Laundering (AML) risks. Financing of Terrorism (CFT). »
Experts du FMI – Source : Kenya: Technical Assistance Report-Crypto Regulation and Legislation
In the technical assistance report issued by the international institution on January 8, experts emphasize that the East African country relies to regulate the market crypto on “obsolete regulations planned for traditional markets”. This is why, “the leverage effect of these regulations is limited” and if we add the character “legally non-binding” of the legal framework, we therefore understand why the country knows “an increase in scams linked to cryptocurrency”.
During their presence on site, IMF teams would have observed “a significant degree of uncertainty” et “a lack of consensus” shouting within the various organizations responsible for regulating cryptoassets. Hence this main recommendation to align the future legal framework “with international norms and standards”.
…about Bitcoin and cryptocurrencies and urges authorities to follow them
In order to guide the development of this new regulatory frameworkthe institution headed by Kristalina Georgieva recalls that it should be aligned with the Bali Fintech Agenda (led by the World Bank and the IMF), on the recommendations of the FATF and on the Global Regulatory Framework for Crypto-Asset Activities of the Financial Stability Council. Of course, national particularities will not be forgotten and the FMI recalls this in its recommendations:
“The development of this legal framework will need to take into account the unique challenges and opportunities in Kenya’s crypto market while ensuring that it is robust, transparent and capable of fostering innovation while protecting consumers and maintaining privacy. financial stability. »
Experts du FMI – Source : Kenya: Technical Assistance Report-Crypto Regulation and Legislation
Concretely, within six to twelve months, the country will have to carry out a vast census of rules in force and clarify both the role of each and the scope of each regulatory body. In the coming year and the following, it will then be a question of putting in place the new, more restrictive legal framework, including a system oflicensing. This will strengthen the surveillance in the country and to better communicate with the regulatory authorities of neighboring countries.
Vast program for Kenyan legislators who will have to roll up their sleeves and get to work to get to the heart of these numerous recommendations. We also remember that, like its neighbor Ethiopia, Kenya is seeking to attract the giants of the mining sector with energy – or surplus energy – in large quantities and therefore inexpensive.
Teacher in the city as well as on stage, popularizing and explaining is my daily life. A practicing crypto-agnostic, I seek light in the darkness of the internets while trying to avoid factional quarrels! While waiting for the revelation, I am buying Bitcoin for my children and I am enthusiastic about projects aimed at the general public.
