The Kenyan Senate Information, Communication and Technology committee has said it is ready to involve the Central Bank of Kenya (CBK) and other stakeholders in shaping the country’s policy towards crypto assets and virtual asset service providers. . According to the committee, such a policy helps regulate the use of crypto assets in the country “to ensure that Kenya reaps the benefits of financial innovation while minimizing risks.”
Harnessing the ‘benefits of financial innovation’
A Kenyan Senate committee recently said it decided to work with the Central Bank of Kenya (CBK) and other stakeholders in its bid to set the East African nation’s policy towards virtual asset service providers (VASPs) and ” the use of crypto assets in Kenya ”
In a statement issued through Twitter, The Senate Information, Communication and Technology Committee argued that establishing such a policy will help Kenya enjoy the benefits of innovation.
“In considering the response received from the CBK regarding the Committee’s inquiry into Kenya’s digital asset infrastructure in Parliament buildings, Cmte members emphasized the need to have an established policy governing Central Bank digital currency and crypto assets in the country. to ensure Kenya reaps the benefits of financial innovation while minimizing risks,” the Senate tweeted.
Promoting the adoption of technology and innovation within the financial sector
Meanwhile, the Senate committee’s announcement comes two months after the Joint Forum of Financial Sector Regulators (JFSRF) said it would consider creating a technical working group with a mandate to recommend the establishment of a crypto regulatory framework.
As explained in the joint statement of the JFSRF issued on December 16, 2022, the recommendations “will follow extensive consultations and deliberations across the financial sector and other relevant stakeholders.”
Statement on the XIII Meeting of the Joint Council of Financial Sector Regulators pic.twitter.com/E6Sa1Jzg1U
— Central Bank of Kenya (@CBKKenya) December 16, 2022
In addition to the cryptocurrency-related recommendation, Kenya’s five-member forum of regulators said it has also resolved to coordinate the development of a framework that promotes the adoption of emerging technologies and innovations within the financial services sector. Doing this helps “enhance effective regulation and supervision”.
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