Cryptocurrencies are Not Recognized by CBK Act and Not Regulated ~ CS, ICT, Joe Mucheru

CS, ICT, Kenya, speaking during the launch of the Blockchain Taskforce

In light of recent developments where the CBK has come out to outrightly warn commercial banks from dealing in cryptocurrencies, it is clearly evident that they neither have the right nor the mandate to ban or restrict the use of virtual currencies.

“If you look at the Central Bank of Kenya Act, it does not recognize, I mean, the law today does not recognize virtual or cryptocurrencies. In which case, unless the laws are being changed, you cannot go into it or get out of it.” Said the CS, ICT, Kenya, Joe Mucheru.

According to Mr. Mucheru, the law needs to catch up with some of these technologies. He however, admitted that the caution and warnings by the regularities are in good faith due to the risks posed.

Mr. Mucheru was speaking during the launch of the Blockchain Taskforce in late February where he unveiled the 11-person team that is mandated with coming up with a roadmap and framework that help come up with the regulations and laws around blockchain and cryptocurrencies in Kenya.