Watch the Bitcoin Market Rise in Kenya

Kenya’s Silicon Savannah is witnessing a surge in interest in cryptocurrency trade. Increasingly, residents of the country are seeing cryptocurrencies as the future of value exchange. In this article, we will explore the regulation of cryptocurrency in Kenya and the growth of P2P platforms. Finally, we will examine how cryptocurrency is affecting remittances in Kenya.

Investing in cryptocurrencies

With the rise in popularity of crypto, Kenyans are increasingly interested in investing in it. But before making a move to invest in cryptocurrencies, it is important to understand the risks. In Kenya, the cryptocurrency market is not regulated, leaving consumers exposed to fraud. Furthermore, the complexity of the cryptocurrency market makes investing in it difficult for the average Kenyan.

Cryptocurrency prices fluctuate dramatically, causing losses for many investors. The most recent crypto crash saw the market lose more than half of its value. Fear of soaring interest rates and inflation caused investors to pull their money out of the market. The Central Bank of Kenya has warned Kenyans not to invest in cryptocurrencies in the country due to the risk of losing money.

Regulation of cryptocurrencies in Kenya

The Central Bank of Kenya (CBK) is tasked with the regulation of cryptocurrencies in Kenya. To operate in the country, a company must acquire a license. The license covers any activity related to cryptocurrencies, such as receiving money from payees and sending it elsewhere. Kenyan authorities have the power to suspend the operations of such companies if they do not have a license.

While Kenya does not have specific laws relating to cryptocurrencies, Kenya has guidelines that apply to digital marketplaces. Those who operate P2P exchanges will be liable to pay taxes on all income generated through the transactions. Kenyan authorities have a general skepticism about cryptocurrencies, which are largely anonymous. However, they recognize the potential for fraudulent misappropriation, and are seeking to increase the integrity of the financial system.

Growth of P2P platforms

The growth of peer-to-peer platforms in Kenya has raised the number of people who can access these services. However, this rapid growth has not accompanied a clear understanding of the risks involved in these loans. To improve the risk management process for users, peer-to-peer platforms should ensure that they explain to people about the risks and rewards of investing in their platforms.

Cryptocurrency is growing in popularity in Kenya. Kenyans have long struggled with digital transactions, but cryptocurrency has helped them to send and receive money without having to deal with third parties. However, the Central Bank of Kenya discourages Kenyans from using digital currencies because they are not backed by any central authority.

Impact of cryptocurrency on remittances

This paper aims to identify the impact of cryptocurrency on Kenya’s economy and how it will affect remittance fees and international transfers. It uses the mobile money platform BitPesa as its case study. It also examines how the cryptocurrency is used by Kenyans. The results suggest that there is a need for further research to understand the impact of cryptocurrency on the country’s economy. However, the paper also highlights concerns with the price volatility of bitcoin and the unregulated legal framework of digital currencies.

While there are no specific cryptocurrency payment declarations in Kenya, there are general guidelines governing AML/CFT. For example, the Kenya Association of Bankers (KAB) and POCAMLA have guidelines on transactions involving $10,000 or more. These guidelines may apply to cryptocurrency as well, but KYC requirements are likely to differ depending on the type of cryptocurrency and the amount of money involved.