Technical Assistance Reports

Kenya: Technical Assistance Report-Crypto Regulation and Legislation

January 8, 2025

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Format: Chicago

International Monetary Fund. Monetary and Capital Markets Department "Kenya: Technical Assistance Report-Crypto Regulation and Legislation", Technical Assistance Reports 2025, 001 (2025), accessed January 9, 2025, https://doi.org/10.5089/9798400298233.019

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Summary

This technical assistance report outlines the current state and future objectives for regulating crypto assets in the Republic of Kenya. The report, prepared at the request of Kenya's Capital Markets Authority, involved an analysis of crypto-asset activities and the related regulatory framework. The report emphasizes the need for a clear legislative framework with specific definitions and classifications of crypto assets, effective inter-agency cooperation, and continuous market monitoring. It highlights the importance of consumer protection through increased financial literacy and regulatory clarity. The diligent efforts of authorities to guide the public have underscored the need for a regulatory framework to mitigate risks and support market integrity. The development of this framework should consider the unique challenges and opportunities within Kenya's crypto market, ensuring it is robust, transparent, and capable of fostering innovation while protecting consumers and maintaining financial stability. Additionally, the report recommends leveraging international best practices to enhance the effectiveness of Kenya's regulatory approach.

Keywords: Blockchain, Consumer Protection, Cross-sectoral Cooperation, Crypto Regulation, Financial Literacy, Financial Stability, Kenya, Market Analysis, Market Integrity, Regulatory Sandbox, Risk Assessment, Tokenization., Virtual Asset Service Providers Legislative Review

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