Decision in Two Weeks
The Kenyan parliament has given two weeks to determine whether cryptocurrencies will need to be regulated to Treasury Secretary Henry Rotich, Business Daily Africa reported on Wednesday.
The Finance and National Planning Committee questioned Rotich in the country about the use of bitcoin. Specifically, the committee asked”why the Treasury and the Central Bank of Kenya (CBK) allowed people to venture into the unregulated cryptocurrency space without being licensed to operate and taxed,” the news outlet detailed and quoted the chairman of this committee, Joseph Limo, saying:
We are surprised to hear that the CBK isn’t aware that there’s an ATM in town, a lounge at Kenyatta University, and a resort in Nyeri that trade in bitcoins. Since people are trading billions in virtual space, a larger problem is in Kenya however the Treasury has not licensed and taxed it for example trade in M-Pesa and bank transactions.
When to Start Regulating
Rotich admitted that there’s a lot of interest in cryptocurrency, adding that he will look into if there are crypto exchanges operating in the country and best bitcoin casino free play. Thus far,”I’m not aware of people operating locally…But I will endeavour to discover whether we’ve got neighborhood exchangers,” the publication quoted him.
After explaining that any local crypto exchanges will be identified by the central bank and evaluate their risks to see whether regulation is needed now or later, he asserted:
The issue of cryptocurrencies is evolving and we can take a position as a nationmBit bitcoin casino This is a delicate balance between killing it and encouraging innovation.
Parliament’s Concerns about Crypto
Capital Business also reported on Wednesday that”Molo Constituency Member of Parliament Kimani Kuria wants cryptocurrencies such as bitcoins to be regulated because of risks associated with electronic currencies.”
Citing that”cryptocurrency transactions are anonymous,” Kuria claims they”can easily be used by corrupt government officials trying to conceal fraudulent money.”
He proceeded to explain,”A person that has billions of cash obtained wrongly needs only to purchase several bitcoins that can store value in a system that lacks centralized outsight. Then he could go to another country, recover his money and move on with life.”
In answering a question by the Finance and National Planning Committee, Rotich was”hesitant to react on the government’s capacity to monitor and regulate cryptocurrency transactions conducted over the Kenyan borders,” the information outlet described. But he elaborated:
Unlike other investment avenues, no government authorities regulate cryptocurrencies. Due to limited understanding of the cryptocurrency, their nature and the influx of businesses engaging in it, it’s prone to abuse by terrorists, criminals and extortionists that are taking advantage of the space.
What do you think Kenya will do about cryptocurrencies? Let us know in the comments section below.
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