The last two years, the Kenyan government and central bank to discuss the regulation of bitcoins and other digital currencies. In March 2018 the country's Central Bank warned the public about investing in bitcoin after the region’s Capital Markets Authority conducted an investigation on the ICO called Kenicoin. Despite attempts by the financial regulators to abolish the digital currency, local merchants and traders in the region are still flocking toward the crypto asset economy.
Kenyans wishing to purchase bitcoins and other cryptocurrencies have the opportunity to do this on a lot trading platforms. The most popular exchange is Remitano, Coindirect, Belfrics, BitPesa, Paxful, and Localbitcoins. The volume of local trade on the last exchange are at a consistently high level over the last two weeks they have made 29,701,399 Kenyan shillings (297 thousand dollars). Paxful trade volumes also high on: over the same time period, they amounted to 4,679,664 Kenyan shillings (48 thousand dollars).
According to reports from the BBC on 22 February, more and more Kenyans are beginning to use digital assets. The Blockchain Association of Kenya (BAK) confirmed this information, adding that despite warnings from local regulatory authorities about the risks of cryptocurrency trading many citizens use bitcoins and other digital assets for payment of education in Kenya and Nigeria, as well as purchase a variety of products in China. In addition, bitcoin is actively used by many Kenyan freelancers. According to BAK, blockchain-based currencies can reduce transaction costs and boost local remittances.
In late March, The Blockchain Association of Kenya is going to hold the World Blockchain Summit in Nairobi to support the development of cryptocurrency solutions and blockchain technology in the country. It is noteworthy that the Kenyan Capital Markets Authority also plans to launch a platform for the incubation of financial technologies in may this year, but at the moment cryptocurrency projects and developers do not have access to the sandbox.
The CMA chief executive officer Paul Muthaura said:
"We will evaluate projects for compliance with certain conditions. Now at the verification stage are 70 companies, some of them foreign. Blockchain-firms can apply for consideration only if they will not be associated with cryptocurrencies, since the CMA’s mandate does not extend to currency".
Muthaura also agreed with the repeated assertion by the Kenyan Central Bank: cryptocurrency have zero control, so retail investors can't count on help from regulators in case of financial loss. Muthaura added that digital assets can bring new risks into the world of finance that could destabilize traditional markets and harm retail investors.
However, statistics indicates that in 2019 the Kenyan crypto traders will continue to increase cryptocurrencies volume.