- Kenyan President William Ruto has announced a significant shift in the country’s approach to cryptocurrency, appointing U.S.-based Bitcoin mining company Marathon Digital as a consultant.
- The move indicates a departure from the Central Bank of Kenya’s previous stance on cryptocurrencies.
- Marathon Digital will collaborate with the National Treasury and the Energy Ministry to address the energy requirements associated with cryptocurrency mining.
Kenya is taking significant strides towards cryptocurrency regulation, appointing Marathon Digital as a consultant to address energy needs and the cryptocurrency regime.
Marathon Digital to Collaborate with the Kenyan Government
President Ruto made the announcement during the AMCHAM Business Summit, attended by notable figures such as U.S. Secretary of Commerce Gina Raimondo and Kenya Investment and Trade Cabinet Secretary Rebecca Miano. Marathon Digital will partner with the National Treasury and the Energy Ministry to address the energy requirements associated with cryptocurrency mining. This move signifies a shift from the previous cautious stance on crypto taken by institutions like the CBK under former governor Patrick Njoroge.
Kenya’s Shift Towards Cryptocurrency Regulation
Following Njoroge’s tenure, Kenyan authorities have shown a willingness to explore regulation of cryptocurrencies rather than outright prohibition. Collaborative efforts with organizations like the Kenyan Blockchain Association have been initiated to draft regulatory frameworks. The current government has also appointed a working group to develop a comprehensive regulatory and monitoring framework for virtual asset service providers.
Kenya Takes Strides Towards Cryptocurrency Regulation
Kenya is initiating efforts toward crypto regulation, with the government forming a multi-agency team that includes the central bank. The momentum for crypto adoption culminated in December 2023 when the Kenyan National Assembly’s committee approved the Capital Markets Bill. If passed into law, this bill would introduce taxation on cryptocurrency exchanges and wallets, mirroring the taxation framework applied to traditional banking transactions.
Conclusion
The appointment of Marathon Digital as a consultant signifies a major policy shift in Kenya’s approach to cryptocurrency. With the formation of a multi-agency team and the potential introduction of a taxation framework for crypto transactions, Kenya is making significant strides towards cryptocurrency regulation. This move could potentially pave the way for other African nations to follow suit.
