Crypto experts believe uncertain regulatory policies are slowing down digital money advancements in Kenya.
The age of digital money has faced many hurdles over the years. These different challenges are what have been hindering the growth of cryptocurrencies on a global scale. It has challenged both the concepts of crypto adoption and acceptance. One vital problem facing cryptocurrencies today is regulation.
Major Updates
- Mwakisha says the lack of regulations make crypto prone to criminality.
- Luno suggests a CBK digital currency.
- Blockchain Expert reports that Kenya could lag behind digital trends.
In Africa, many countries are struggling to accept the use and adoption of digital money. This has been due to many reasons; criminal activity, regulation, and many others.
One important instance and most recently is the Zimbabwean Binance block, a product of newer regulations that has banned all Zimbabweans from the exchange platform. Similarly, in Nigeria, the CBN had also placed a crypto ban earlier in February.
For Kenya, many experts have come to express their thoughts on the slowed growth of cryptocurrencies in the nation. They say that the slow pacing digital money regulations are a major hurdle for cryptocurrencies to thrive.
These experts see potential in the Kenyan crypto market as the country currently occupies the number two spot on the Paxful platform. This is a great achievement as they overtake Ghana from last year. They recommend that the lingering regulation process is suppressing the Kenyan crypto market.
George Mwakisha, Business Development Manager at Binance’s Kenyan division, believes that the government is only opening a way for criminal activities due to slow regulatory pacing.
According to the popular exchange, Luno, they believe that the Central Bank of Kenya should quicken the regulatory decision-making process. This would speed up the advancements of cryptocurrencies and will highly benefit both the government and the people.
Reports from a reputed Blockchain enthusiast body in 2019 recommended that the acceptance of cryptocurrencies in Kenya be hastened. This is because of the inevitable global dominance of cryptocurrencies currently underway.
It was even recommended that the CBK issue a digital currency of their own that would suit the preference of both the government and the people.
The topic of cryptocurrency continues to replicate in countless discussions and yet to be placed regulations. Mwakisha even suggests acceptance of crypto onto Fintech platforms should be considered.
What do you think about the effect of regulations on the Kenyan crypto market?
