Key Takeaways
- Kenya central bank releases remittances figures for 2021
- Remittances from diaspora reach record levels
- South Korea announces crypto laws
According to the information, the growth of remittances in the country has increased by 20% since 2020. Kenyans abroad sent about $1.8 billion to the country compared to the $1.4 billion recorded in 2020.
This increase is likely from the global economy returning to normal following the Coivid-19 lockdown in 2020. The data shows that the inflows have increased during this period.
Remittances from North America topped the charts of regions across the world. For example, the region topped 60% of the total remittances sent to Kenya in May. This increased to about 62% for the total percentage of remittances in June.
The European market accounted for 21% of the total remittance amount, up 4% from its value in 2020. The central bank data also noted that remittances from Europe and North America represented a major source of Forex for the country.
This data could be more if other forms of remittances like cryptocurrencies are added. Kenya is regarded as one of the top crypto countries in Africa. Youths have turned to crypto-assets as a hedge against inflation in recent years.
Cryptocurrencies like Bitcoin and ethereum are well known, with many people in the diaspora turning to crypto-assets. However, the country does not view bitcoin as a legal tender.
South Korea has announced that all cryptocurrency exchanges wishing to operate in the country must list their activity by September 24 at the risk of receiving a fine or even jail time. Currently, 27 exchanges have already received a reminder regarding their registration obligation.
Under the new law, the penalties are up to five years in prison or a fine of up to 50 million won, or about $ 43,500. According to some sources, there are even plans to block the websites of exchanges "to prevent their illegal business operations.
Do you think that crypto dominates the Kenya remittance industry?
