Kenya’s Senate Information, Communications and Technology committee said it stands ready to involve the Central Bank of Kenya (CBK) and other stakeholders in shaping the country’s policy regarding crypto assets and virtual asset service providers. According to the committee, this policy helps govern the use of crypto assets in the country “to ensure that Kenya enjoys the benefits of financial innovation and minimizes the risks.”
Harnessing the ‘Benefits of Financial Innovation’
A Kenyan Senate committee recently said it had resolved to work with the Central Bank of Kenya (CBK) and other stakeholders in its attempt to establish the East African country’s policy regarding virtual asset service providers (VASPs) and “the use of crypto assets in Kenya ”
In a statement released via Twitter, the Senate Information, Communications and Technology Committee argued that establishing such a policy will help Kenya reap the benefits of innovation.
“In considering the response received from the CBK on the Committee’s investigation into Kenya’s digital asset infrastructure in Parliament buildings, Cmte members stressed the need to have an established policy governing Central Bank Digital Currency and crypto assets. in the country to ensure Kenya reaps the benefits of financial innovation while minimizing the risks,” tweeted the Senate.
Promoting the Adoption of Technology and Innovation in the Financial Sector
Meanwhile, the Senate committee’s announcement comes two months after the Joint Financial Sector Regulators Forum (JFSRF) said it would consider creating a technical working group with a mandate recommending the establishment of a crypto regulatory framework.
As explained in the joint JFSRF communiqué issued on December 16, 2022, the recommendations “will follow extensive consultations and deliberations across the financial industry and other relevant stakeholders.”
Communiqué of the 13th Joint Meeting of the Council of Financial Sector Regulators pic.twitter.com/E6Sa1Jzg1U
— Central Bank of Kenya (@CBKKenya) December 16, 2022
In addition to the crypto-related recommendation, Kenya’s five-member regulators forum said it has also resolved to coordinate the development of a framework that promotes the adoption of emerging technologies and innovations in the financial services sector. This helps “improve effective regulation and supervision”.
Register your email here to receive a weekly update on African news sent to your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons
disclaimer: This article is for information purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author are responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.