Decision in 2 Weeks

Henry Rotich.

The Kenyan parliament has given fourteen days to determine whether cryptocurrencies will need to be regulated to Treasury Secretary Henry Rotich, Business Daily Africa reported on Wednesday.

The Finance and National Planning Committee questioned Rotich about bitcoin’s use in the country. Specifically, the committee asked »why the Treasury and the Central Bank of Kenya (CBK) allowed people to venture to the unregulated cryptocurrency space without being licensed to operate and taxed, » the news outlet detailed and quoted the chairman of the committee, Joseph Limo, stating:

We are surprised to hear that the CBK isn’t aware that there is a resort in Nyeri that trade in bitcoins, an ATM in town, and a lounge at Kenyatta University. A larger problem is in Kenya since individuals are trading billions in virtual space yet the Treasury has not licensed and taxed it for example commerce in M-Pesa and bank transactions.

When to Start Regulating

Rotich admitted that there’s a whole lot of interest in cryptocurrency, adding that he will look into if there are crypto exchanges operating in the country and best bitcoin casino free play. So far, »I am not aware of people operating locally…But I will endeavour to discover whether we have neighborhood exchangers, » the book quoted him.

He asserted after explaining that the bank will identify any crypto exchanges and evaluate their risks to see whether regulation is needed now or afterwards:

The issue of cryptocurrencies is evolving and we could take a position as a countryBetChain site 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 needs cryptocurrencies for example bitcoins to be regulated 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 conceal fraudulent money. »

He proceeded to explain, »A man who has billions of cash acquired wrongly needs only to buy several bitcoins which can store 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 react on the government’s capacity to monitor and regulate cryptocurrency transactions conducted within the Kenyan borders, » the news outlet described. He elaborated:

Unlike other investment avenues, cryptocurrencies are not regulated by any government authorities. Due to 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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