**Kenya Set to Embrace Bitcoin and Cryptocurrencies with New Policy Draft**

A Shift in Policy: Kenya Opens Up to Digital Assets

In a significant move, the Republic of Kenya is poised to legalize digital assets, including Bitcoin and cryptocurrencies, after years of restrictions. According to a recent report by The Standard Media, the East African country is preparing legislation to allow the use of these assets, marking a major shift in its policy.

Harnessing the Potential of Cryptocurrencies

John Mbadi, Kenya’s Treasury Cabinet Secretary, announced the policy shift, stating that the country aims to harness the potential of the cryptocurrency sector. Mbadi highlighted the innovations brought about by Bitcoin, including its qualities as an investment tool, seamless transacting ability, and anonymity. The Kenyan government has resolved to adopt this new technology and tap into its untapped potential.

Creating a Regulatory Framework

In December, Kenya drafted a national policy on virtual assets and their service providers, which will provide a regulatory framework for the new sector. The policy aims to create a market for cryptocurrencies in Kenya while addressing concerns such as liability to usage for cybercrimes and lack of customer protection.

A Change of Heart: From Restrictions to Regulation

This policy shift marks a significant departure from Kenya’s historical stance on virtual assets. In 2015, the country’s central bank declared cryptocurrencies illegal, and transactions involving these assets were banned. However, despite these restrictions, Kenyans continued to use digital assets, with a United Nations report showing that 8.5% of the population owns digital assets. The government even imposed a 15% tax on crypto transactions.

Global Trend: Countries Embracing Bitcoin and Cryptocurrencies

Kenya’s move reflects a global trend towards embracing Bitcoin and cryptocurrencies. Countries such as Morocco, the United States, Russia, and the European Union are also exploring the adoption of these assets. In September, Morocco drafted a bill to create a legal and regulatory framework for cryptocurrencies, while other nations are considering adopting Bitcoin as a strategic reserve asset.

Conclusion

In conclusion, Kenya’s decision to legalize digital assets marks a significant shift in its policy and reflects a growing global trend towards embracing Bitcoin and cryptocurrencies. As countries continue to explore the potential of these assets, it is essential to create regulatory frameworks that address concerns and provide a secure environment for their use.

Source: Thecryptobasic.com

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