The International Monetary Fund (IMF) recommends that Kenya create a clear and predictable regulatory environment for the cryptocurrency market to protect consumers and address risks related to anti money laundering (AML) and counter-terrorism financing (CFT).
The IMF pointed out that Kenya currently relies on outdated regulations in traditional markets and lacks legally binding regulation of the cryptocurrency market, leading to an increase in cryptocurrency related fraud and criminal activities.
The IMF recommends that Kenya develop a cryptocurrency regulatory environment that is consistent with international frameworks and standards, while considering the unique challenges and opportunities of the local market, to ensure that the regulatory framework can protect consumers, maintain financial stability, and promote innovation.
