Decision in 2 Weeks
The Kenyan parliament has given Treasury Secretary Henry Rotich two weeks to decide whether cryptocurrencies will need to be controlled, Business Daily Africa reported on Wednesday.
The Finance and National Planning Committee questioned Rotich concerning bitcoin’s use in the country. Specifically, the committee asked”why the Treasury and the Central Bank of Kenya (CBK) allowed people to venture into the unregulated cryptocurrency space without being licensed to operate and taxed,” the news outlet detailed and quoted the chairman of the committee, Joseph Limo, saying:
We are surprised to hear that even the CBK isn’t aware that there’s an ATM in town, a lounge at Kenyatta University, and a resort in Nyeri which trade in bitcoins. A problem is in Kenya since individuals are trading billions in virtual space yet the Treasury has not licensed and taxed it like commerce in bank and M-Pesa transactions.
When to Start Regulating
Rotich admitted that there’s a whole lot of interest in cryptocurrency, adding that he’ll look into if there are crypto exchanges operating in the country and best bitcoin casino free play. So far,”I’m not aware of people operating locally…But I will endeavour to find out whether we have neighborhood exchangers,” the book quoted him.
He asserted after explaining that the central bank will identify any local crypto exchanges and evaluate their risks to see whether regulation is required now or later:
The matter of cryptocurrencies is evolving and we can take a position as a countryEthereum Sweepstakes review This is a delicate balance between encouraging innovation and killing it.
Parliament’s Concerns about Crypto
Capital Business also reported on Wednesday that”Molo Constituency Member of Parliament Kimani Kuria wants cryptocurrencies such as bitcoins to be controlled because of risks associated with digital currencies.”
Citing that”cryptocurrency transactions are anonymous,” Kuria claims they”can easily be used by corrupt government officials seeking to hide fraudulent money.”
He proceeded to explain,”A man who has billions of cash obtained wrongly needs only to purchase several bitcoins which can save value in a system that lacks centralized outsight. Then he could go to another country, recover his money and proceed with life.”
In answering a question by the Finance and National Planning Committee, Rotich was”reluctant to respond on the government’s capacity to monitor and regulate cryptocurrency transactions conducted over the Kenyan borders,” the news outlet described. However, he elaborated:
Unlike other investment avenues, no government authorities regulate cryptocurrencies. As a result of limited understanding of the cryptocurrency, their unregulated nature and the influx of businesses engaging in it, it is prone to abuse by criminals, terrorists and extortionists that are currently taking advantage of the unregulated space.
What do you think Kenya will do about cryptocurrencies? Tell us in the comments section below.
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