IMF: Kenya Must Develop a Regulatory Environment

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The IMF has recommended that Kenya implement clear and predictable regulatory measures for the cryptocurrency market in order to protect consumers and address risks related to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT).

This recommendation came after a request from the Capital Markets Authority (CMA) of Kenya, with the IMF releasing a technical assistance report on the country’s crypto regulations on January 8.

The report highlighted the reliance on outdated regulations for traditional markets in Kenya, which have little to no control over the crypto market.

This has led to an increase in fraud and other criminal activities related to cryptocurrencies. The IMF noted a lack of consensus among Kenyan lawmakers on how to regulate crypto assets and advised the country to align their regulations with international standards.

They also emphasized the need for a clear and predictable regulatory environment to safeguard consumers and address any AML and CFT risks.