The International Monetary Fund (IMF) has urged Kenya to establish a comprehensive regulatory framework for its cryptocurrency market.
The reliance on traditional market regulations has made the crypto sector vulnerable to scams and illicit activities. The current regulatory landscape in Kenya is described as outdated and insufficient.
The IMF recommends conducting studies to better understand the dynamics of the cryptocurrency market and enhancing collaboration among regulatory agencies. It also suggests implementing a licensing system for cryptocurrency operators and aligning Kenya's legal framework with international standards.
The IMF emphasizes the importance of clearly defining cryptocurrencies within financial laws and engaging with international regulators to manage risks. Kenya has emerged as a leader in cryptocurrency adoption in Africa, with a significant number of citizens engaged in cryptocurrency activities. The IMF's recommendations aim to protect consumers, encourage innovation, and mitigate risks in the crypto market.