Kenya’s Joint Financial Sector Regulators (FSRB) have resolved to work on recommendations for the establishment of an oversight framework targeting crypto assets, players, and activities in Kenya.
In a statement published by the Central Bank of Kenya (CBK), the group, which consists of 5 regulatory bodies indicated that their action was in response to a ‘recommendation’ from the Kenya Ministry of National Treasury and Economic Planning.
Communique on the 13th Joint Financial Sector Regulators' Board Meeting pic.twitter.com/E6Sa1Jzg1U
— Central Bank of Kenya (@CBKKenya) December 16, 2022
The group also wants to coordinate the development of a framework for promoting the adoption of technology and innovations in the financial services sector so as to help them with effective regulation and supervision.
FSRB’s main role is to enhance how the respective organizations collaborate in mutual areas including legal and policy issues, regulation and supervision, and information sharing. The members include:
- Capital Markets Authority (CMA)
- Central Bank of Kenya (CBK)
- Insurance Regulatory Authority (IRA)
- Retirement Benefits Authority (RBA)
In October 2022, CBK Governor, Dr. Patrick Njoroge, said they were keen on regulating cryptocurrencies because they are apprehensive of the fast pace of growth in the sector and what this could mean for consumers.
“The point is, like all asset classes, one needs to regulate it in some way to make sure that this is something that not only makes sense but whoever is involved in it it doesn’t bring in the other evils and negatives that actually could very easily open the door to if left unchecked.” – Governor, CBK
He has previously also said he would be crazy to let Kenya add bitcoin to its reserves reiterating that cryptocurrencies need to pass a test as to what they are solving.
However, the Governor has insisted they are not trying to get in the way of innovation. Together with the other members of the board, they will be submitting recommendations to the ministry headed by the new minister and immediate former Central Bank governor, Prof. Njuguna Ndung’u.
Ndung’u is thought to be more open to crypto, and enthusiasts in Kenya have been keeping an eye on his actions during his tenure in the Kenyan government.
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