Kenyan govt engages in crypto policy & Bitcoin mining energy consumption discussion
Experts noted that Kenyan government agencies are in discussion with the crypto players to introduce new policies for the crypto sector.
Kenya has a budding interest in cryptocurrency, but there’s no clear legal framework governing its use. Despite a cautionary notice from the Central Bank of Kenya, the crypto scene continues to thrive with startups and exchanges operating in the country. However, the absence of clear regulations poses challenges and uncertainties for investors and businesses in this space, emphasising the need for comprehensive legal frameworks to provide clarity and encourage responsible innovation.
Reportedly Marathon Digital, a Bitcoin mining firm, is in talks with the Kenyan government about Kenya’s rules for cryptocurrency and how much energy crypto mining needs. Media reports noted that Kenya has been making rules for crypto bit by bit.
It is worth it to note that the official discussion around crypto regulation & Bitcoin mining happened somewhere in April of this year but this official information came to the public domain on 6 May 2024.
The Kenyan President William Ruto said at a business meeting that Marathon has been invited to talk with Kenya’s finance and energy departments. In this meeting, U.S. Commerce Secretary Gina Raimondo was among the attendees.
Marathon is a US-based Bitcoin mining firm that also has a presence in Abu Dhabi and Paraguay via joint mining ventures. Now there is a huge probability that Marathon is going to show its presence in Kenya also.
In the past many times, the Kenyan government showed significant regulatory heat against the crypto sector but in Nov 2022, the situation became something soft for this innovative sector, when Ruto took office.
Kenya vs Worldcoin
In August 2023, the Kenyan government ordered human verification crypto protocol Worldcoin (WLD) to wind down business operations from the country citing security concerns.
Notably, Kenya was not the first country that raised concerns over Worldcoin’s business concept. At present, more than a dozen countries are against this crypto project.
Read also: Expert says 95% of Bitcoin spot ETF holders seem long-term investors
