Decoding the Dilemma of Cryptocurrency Regulation in Kenya University of Nairobi

[vc_row triangle_shape="no"][vc_column][vc_column_text] Although Kenyans have quickly and enthusiastically adopted cryptocurrency nevertheless the government has not provided an adequate regulatory framework to safeguard their interests. This has created substantial risk which requires to be addressed as it could lead to substantial and negative effect on the Kenyan economy. Cryptocurrency and its underlying blockchain technology are a relatively new phenomenon around the world which have evolved dramatically and are now considered to be a disruptive technology. They have developed to such a point as to become impossible to ignore. Their proponents champion anonymity and security in the transfer of value in digital format with minimal government involvement thereby allowing the community to transact through a spontaneous order dubbed by economists as catallaxy. Though the cost of transaction particularly across borders has been significantly reduced cryptocurrencies have not been without challenges particularly as regards theft, illegal and criminal activities. The pace at which cryptocurrencies are developing has therefore created substantial challenges for regulators around the globe especially in their definition and/or classification (taxonomy) as well as in the manner in which various regulators have chosen to respond to this new phenomenon. The study reveals that Kenya too is grappling with how to deal with cryptocurrencies...

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