IMF urges Kenya to align crypto laws with global standards
The International Monetary Fund (IMF) has recommended that Kenya establish a clear regulatory framework for its cryptocurrency market to enhance consumer protection and mitigate risks related to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT). A technical assistance report highlighted that existing regulations are outdated and insufficient for crypto markets, leading to increased scams and criminal activities. The IMF observed uncertainty among Kenyan lawmakers regarding crypto regulation and urged alignment with international standards. Short-term recommendations include empirical analysis and collaboration among regulatory bodies, while medium to long-term suggestions involve creating a legal framework, strengthening supervisory resources, and defining crypto assets clearly. The IMF also emphasized the importance of engaging with foreign regulators to address risks from international exchanges.
