Kenya is taking a step towards regulating the use of cryptocurrencies in the country. The government has released a draft proposal for a new legislation that aims to provide a legal framework for the use and trading of digital currencies. This move comes as a response to the growing popularity and adoption of cryptocurrencies in Kenya.

The draft proposal, which is open for public feedback until January 24th, outlines the government’s plans to regulate the use of cryptocurrencies in the country. It includes measures to prevent money laundering and terrorist financing, as well as protect consumers from fraud and scams.

One of the key aspects of the proposed legislation is the creation of a regulatory body, the Digital Asset Regulatory Authority (DARA), which will oversee the use and trading of cryptocurrencies in Kenya. DARA will be responsible for issuing licenses to cryptocurrency exchanges and other service providers, as well as enforcing compliance with the regulations.

The move to regulate cryptocurrencies in Kenya is a significant step towards legitimizing the use of digital currencies in the country. Currently, there is no specific legislation governing the use of cryptocurrencies, which has led to uncertainty and potential risks for users. With the new regulations in place, individuals and businesses will have a clear understanding of the legal framework surrounding cryptocurrencies, making it easier for them to participate in this emerging market.

The proposed legislation also aims to promote innovation and growth in the cryptocurrency industry in Kenya. By providing a clear regulatory framework, the government hopes to attract more investors and businesses to the country, creating new job opportunities and boosting the economy.

However, the draft proposal has received mixed reactions from the public, with some expressing concerns about the potential restrictions and limitations on the use of cryptocurrencies. Others have welcomed the move, seeing it as a positive step towards embracing new technologies and promoting financial inclusion in the country.

Overall, the proposed legislation marks a significant development in the regulation of cryptocurrencies in Kenya. With the public feedback period open until January 24th, it is an opportunity for individuals and businesses to have their say and shape the future of digital currencies in the country.