The Kenyan Joint Financial Sector Regulators (FSRB) have resolved to work on recommendations for the establishment of a supervisory framework targeting crypto assets, players and activities in Kenya.
In a statement released by the Central Bank of Kenya (CBK), the group, which consists of 5 regulatory bodies, said its action was in response to a “recommendation” from Kenya’s Ministry of National Treasury and Economic Planning.
Statement on the XIII Meeting of the Joint Council of Financial Sector Regulators pic.twitter.com/E6Sa1Jzg1U
— Central Bank of Kenya (@CBKKenya) December 16, 2022
The group also wants to coordinate the development of a framework to promote the adoption of technology and innovations in the financial services sector to help them with effective regulation and supervision.
The primary role of the FSRB is to improve the way the respective organizations collaborate in common areas, including legal and policy issues, regulation and supervision, and information sharing. Members include:
- Capital Markets Authority (CMA)
- Central Bank of Kenya (CBK)
- Insurance Regulatory Authority (IRA)
- Retirement Benefits Authority (RBA)
In October 2022, CBK Governor Dr. Patrick Njoroge said they were interested in regulating cryptocurrencies because they are concerned about the rapid pace of growth in the sector and what this could mean for consumers.
“The point is, like all asset classes, one has to regulate it somehow to make sure that this not only makes sense, but whoever is involved doesn’t bring the other ills and negatives that might actually open the door very easily if left unchecked.” – Governor, CBK
He has previously also said that it would be crazy to let kenya add bitcoin to its reserves reiterating that cryptocurrencies must pass a test on what they are solving.
However, the Governor has been adamant that they are not trying to get in the way of innovation. Along with the other board members, they will submit recommendations to the ministry headed by the new minister and former Central Bank Governor, Prof. Njuguna Ndung’u.
Ndung’u is believed to be more open to cryptocurrencies, and enthusiasts in Kenya have been keeping an eye on his actions during his tenure in the Kenyan government.
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