In response to rising concerns over scams and money laundering, the Kenyan government has established a multi-agency technical working group dedicated to overseeing cryptocurrency operations.
This move comes as Kenya aims to receive 3% of revenue generated from citizens trading digital assets.
The government is also in the process of developing a regulatory framework for virtual assets (VAs) and virtual asset service providers (VASPs).
However, the Blockchain Association of Kenya (BAK) has challenged the legality and constitutionality of the proposed 3% tax on digital asset trading, petitioning the High Court of Kenya.
Furthermore, Kenya’s first Virtual Assets Service Provider (VASP) bill, aimed at regulating the digital asset market, has been drafted by BAK. Amid these developments, the Directorate of Criminal Investigations (DCI) has issued warnings against online cryptocurrency scams.
Notably, Kenya suspended the operations of Worldcoin in August 2023 due to irregular activities, despite pressure from the United States to lift the suspension.
