The Kenyan Capital Markets Authority (CMA) says the country needs a more comprehensive approach that will allow it to leverage the expertise of other regulators when testing crypto assets.
Kenyan crypto interest
The Kenyan authority, which advocates a common sandbox for regulating the financial sector, is also keen to forge “a common stance and messaging with the Central Bank of Kenya (CBK)” on crypto.
The CMA’s most recent comment on cryptocurrencies follows the release of the Capital Markets Soundness report dated Q1 2021. According to the quarterly report, which is self-reliant on the Chainalysis 2020 Geography of Cryptocurrency report, Kenya is “the top 5 global crypto trading activity”. The country’s interest in cryptos is also confirmed by a Blockchainnenter.net report which found Kenya’s bitcoin search interest rate at 94.7%.
Investor protection mandate
Despite this recognition of the growing popularity of crypto assets, the Kenyan regulator insists that it continues to have an investor protection mandate that must be respected. Regarding its position on this, the regulatory authority says:
This is an area of great interest to the Authority given its investor protection mandate, also given the spread of fraud on this front.
While the CMA acknowledges that many Kenyans view cryptocurrencies as an “alternative asset class”, it nonetheless insists that such digital assets are now an “area of interest” as they are likely to “affect the health of the Kenyan capital market.”
With this latest report, the CMA becomes the newest African regulator to reaffirm an earlier stance on crypto assets. Another African regulator that recently reiterated its stance on cryptocurrencies is Ghana’s Securities and Exchange Commission. As reported by Bitcoin.com News, this regulator wants Ghanaians to stay away from cryptocurrencies. Similarly, Nigerian regulators have issued several statements warning residents about the risks of trading cryptocurrencies.
What do you think of the latest statements from the Kenyan CMA on crypto assets? You can share your views in the comments section below.
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