Kenyan lawmakers have approved a bill to regulate digital assets such as cryptocurrencies in a bid to attract more investment into the nascent industry by offering clear-cut regulations for the new business, the chairman of the National Assembly Finance Committee, Kuria Kimani, told Reuters on Monday.
The parliament approved the Virtual Asset Service Providers Bill last week amid concerns over the absence of a legal framework for digital assets, Kimani said.
He further stated that the move brings Kenya one step closer to the likes of South Africa as one of the few African nations with comprehensive laws to regulate the digital asset ecosystem. The bill awaits signature by President William Ruto to become law.
Under the proposed law, the Central Bank of Kenya would be the licensing authority for issuing stablecoins and other virtual assets, while the Capital Markets Authority would license exchanges and trading platforms for cryptocurrencies.
The government’s action comes as a number of countries are preparing for an influx of U.S. dollar-backed stablecoins, which global regulators have warned could destabilize weaker national currencies.
The anticipated legal clarity is expected to attract more investment into Kenya’s financial technology sector, including interest from global crypto exchanges such as Binance and Coinbase, according to Kimani, who referenced previous discussions between those platforms and the government.
“We are hoping that Kenya can now be the gateway into Africa,” he said. “Most of the young people between 18 and 35 years of age are now using virtual assets for trading, settling payments and as a way of investment or doing business.”
Despite the rapid global growth of the digital assets industry over the past decade, regulation has remained a major concern as governments seek ways to prevent criminal exploitation of the systems’ anonymity.
Kimani noted that the new Kenyan law draws lessons from established frameworks in countries like the United States and the United Kingdom.
The post Kenya Eyes Role as Africa’s Crypto Gateway with Landmark Digital Assets Bill appeared first on Nairobi Wire.
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