The CBK and other entities in the financial sector form a joint taskforce to advise the Treasury CS on crypto regulation as MPs seek to push the Capital Markets Bill.
The Central Bank of Kenya softens its stance on cryptocurrencies and recommends a regulatory framework for crypto. The CBK recommends the formation of a technical committee that will create laws to regulate crypto.
The regulations will affect both digital assets and businesses in the crypto sector. The CBK formed a joint task force to advise the Treasury CS on crypto regulation.
The CBK Joint Taskforce
The Joint Financial Sector Regulators Forum (JFSRF) agreed to consider the National Treasury and Economic Planning. The joint task force includes the CBK, Kenya Revenue Authority and the Insurance Regulatory Authority.
Others include Retirement Benefits Authority and the Sacco Societies Regulatory Authority. The task force will help establish a comprehensive oversight framework on crypto assets.
The recommendations will be after comprehensive consultations and deliberations across the financial sector.
Currently, about four million Kenyans hold digital assets. Millions flocked to cryptocurrencies in the hope of quick returns. However, regulators like the Central Bank of Kenya warned that digital assets could be at high risk.
KRA Plans to Tax Cryptocurrencies
In November, the Kenya Revenue Authority (KRA) announced plans targeting crypto owners in the country. KRA plans to go after more than four million Kenyans.
KRA will make a move if MPs approve the changes to the law. The law aims at regulating and taxing the fast-growing digital currency trade.
The Capital Markets Amendments Bill 2022 plans to introduce taxes on crypto exchanges and digital wallets. This puts Kenya among the top countries in the world to regulate crypto. Cryptocurrencies remain unregulated in most parts of the global sphere.
