Kenyan legislators have proposed a bill that would classify cryptocurrencies as securities and require issuers to adhere to certain regulations.
Economist and blogger Amboko Julians shared screenshots of the draft bill, which indicates that the Kenya Capital Markets Authority (CMA) will oversee the country’s blockchain and cryptocurrency activities.
If passed, the bill will expand the definition of “securities” to include digital assets, with all cryptocurrency firms mandated to obtain a CMA license to operate legally within the country.
Additionally, crypto traders and investors must register with the regulator, keep transaction records, and pay taxes on their profits.
The bill also requires individuals to prove that their cryptocurrency has been in development for at least two years and tested on a client base of at least ten thousand users.
Moreover, Kenyan residents who own or trade digital assets must disclose their holdings and transaction history.
The Central Bank of Kenya had earlier prohibited commercial banks from working with two unregistered cryptocurrency startups.
However, the central bank is also exploring launching its own digital currency to improve cross-border payments.