The International Monetary Fund (IMF) has recommended that Kenya update its outdated regulations to establish a clear and predictable regulatory environment for the cryptocurrency market. This advice aims to protect consumers and address risks related to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT). In a technical assistance report released on January 8, the IMF noted that Kenya's reliance on old regulations has led to a rise in crypto-related scams. They observed a significant lack of consensus among lawmakers regarding crypto regulation. The IMF emphasized the need for a framework aligned with international standards, considering the unique challenges of Kenya's crypto market. Recommendations include short-term actions like empirical analysis and regulatory collaboration, as well as medium to long-term strategies such as establishing a legal framework and enhancing supervisory resources. The IMF also urged Kenya to engage with foreign regulators to mitigate risks from international exchanges operating within its borders.

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