MPs call on the Treasury to ban or regulate digital currencies – Mediamax Network Limited

The government is questioning the possibility of regulating digital currencies or banning them amidst the concerns of the Treasury of potential risks to users and the economy.

Rotich was yesterday difficult to explain to the members of the National Finance Assembly and the National Planning Committee why the government has failed to prohibit the operations of digital currencies.

MP Molo Kuria Kimani said that a growing number of Kenyans in digital currencies with the government are turning a blind eye, although some operators are establishing cryptocurrency ATMs in the country.

"Why is the government not clearing and banning or regulating these digital currencies because, as you said, the government can not offer protection against the risks badociated with the transaction by using digital currencies ? "said Kimani.

There are more than 1,500 cryptocurrencies, regulating them could be difficult because transactions are made online and operators sometimes have no physical address.

"These currencies are vulnerable to money laundering and the financing of terrorism. They can be used by those who want to make transactions in the illegal economy or escape the tax. But it is difficult to regulate them because they rely mainly on a complex infrastructure involving multiple entities, often spread across several countries, to transfer funds or make payments, "Rotich told MEPs

. CS stated that although the Central Bank of Kenya (CBK) does not regulate digital currencies because they do not have legal tender, the financial and monetary regulator has in the past issued public notices warning the public to use unregulated virtual currencies. guaranteed by a central bank. Despite the growing interest in digital currencies, he said the government has not authorized anyone in Kenya to offer money transfer services and products using virtual currencies such as bitcoin, and that 39, there is no protection in case of risk. no underlying or badet backing and the value of virtual currencies is speculative in nature. This could result in high currency volatility, exposing users to potential losses, "Rotich told MPs.

Members cautioned the government's lukewarm stance on these new currencies, saying Kenyans and the economy could unscrupulous individuals decided to use the platform to launder money.

"As you have heard from deputies, there are already some ATMs dealing with cryptocurrencies. Government entities such as Kenyatta University have dedicated a huge space called Bicoin Lounge, where possible transactions take place. Why does the government not say loud and clear its position with regard to slot machines to regulate or prohibit? , Said committee chair Joseph Limo