Kenya is taking steps to legalize cryptocurrencies by introducing legislation that represents a major policy shift. This decision is likely to impact crypto adoption levels in the country and foster innovation in the financial sector.
Policy Shift in Kenyan Government
Crypto is not banned in Kenya, but the government has repeatedly cautioned citizens about their use, linking them to scams and other crimes. According to a statement from Treasury Secretary John Mbadi, the financial sector in Kenya is seen as a beacon of innovation and growth.
Level of Crypto Adoption in Kenya
Despite a cautious stance, Kenya ranks second in Africa for crypto adoption, following Nigeria. It holds over $1.5 billion in Bitcoin, making up 2.3% of its GDP. Globally, Kenya ranks 21st in crypto adoption, fueled by strong P2P trading, high internet penetration, and a large unbanked population.
Protection and Regulation of the New Market
In 2023, the Kenyan government suspended tech entrepreneur Sam Altman's Worldcoin crypto project over data privacy concerns. With new legislation, 2025 promises to be a significant year for crypto adoption in Kenya. John Mbadi emphasizes the need to create legal frameworks to harness virtual assets' opportunities while managing associated risks.
The new legislation promises to spur further crypto adoption in Kenya, opening new avenues for financial innovation while the government focuses on risk management and protecting citizens' rights.
