The Senate of Kenya Resolves to Engage the Central Bank of Kenya on Crypto Policy
The Senate of the Republic of Kenya is one of the two Houses of the Parliament of Kenya, along with the National Assembly, and is in charge of legislation affecting the country's 47 counties. Senators are divided into 9 committees which research and consider Bills before presenting them to the wider house.
The committee on Information, Communication and Technology in the Senate of Kenya has decided to engage the Central Bank of Kenya (CBK) and other stakeholders to create a policy regarding virtual assets service providers and use of crypto assets in Kenya.
The Committee on Information, Communication & Technology, Chaired by Sen. Allan Chesang, has today resolved to engage with the @CBKKenya and other stakeholders to come up with a policy regarding virtual assets service providers and use of crypto assets in Kenya. pic.twitter.com/Q37fiqKRvq
“While considering the response received from the CBK regarding the Committee’s inquiry on digital assets infrastructure in Kenya at Parliament Buildings, the Members of the committee emphasized the need to have a laid down policy that governs the Central Bank Digital Currency (CBDC) and crypto assets in the country to ensure Kenya harnesses the benefits of financial innovation while minimizing the risks,” the institution said.
The Senate of the Republic of Kenya is one of the two Houses of the Parliament of Kenya, along with the National Assembly, and is in charge of legislation affecting the country’s 47 counties. Senators are divided into 9 committees which research and consider Bills before presenting them to the wider house.
The senate committee’s resolution comes one month after the Central Bank of Kenya and other financial regulatory bodies announced their own resolution 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.
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 doesn’t bring in the other evils and negatives that actually could very easily open the door to if left unchecked.”
However, the Governor has insisted that CBK is 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.
