Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1583330,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1583330/?format=api",
    "text_counter": 288,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": null,
    "content": "the wash wash . The wash wash industry, you know, was a very big industry and has been a big industry and these people are now graduating from their wash wash business into the virtual assets industry, and scamming very many Kenyans, especially those who are after a quick shilling or a quick buck. It is, therefore, important that we have a legal and regulatory framework that relates to the use of virtual assets and related activities in the country so that we stem this fraud, the challenges on data privacy, fraud and cyber security risks. Hon. Temporary Speaker, in December 2015, the Central Bank of Kenya issued a public notice, cautioning the public against virtual currencies such as Bitcoin, citing the risks in operating in an un-regulated environment. The notice highlighted concerns around the lack of legal protections, potential misuse of money laundering and terrorism financing and the speculative nature of these assets due to their lack of any underlying value. Consequently, the CBK, through Banking Circular No.14 of 2015, prohibited all financial institutions from engaging in or facilitating virtual currency transactions. The lack of a regulatory and legal framework are challenges we have lived with that it took CBK, through a circular, to caution financial institutions from engaging in virtual assets. But the truth is, we cannot function in isolation from the rest of the world. Virtual assets are a reality. As the Chairman of the Committee said while moving the Bill, if M-Pesa was an innovation some years back, then virtual assets are innovations that we must live with. We should create a legal and regulatory framework to govern how financial institutions in our country deal with and transact in virtual assets. This is because virtual assets have no underlying value. It is not like a piece of land or a car for which a valuer can tell you their value. Speculative habits can quickly move the value of a virtual asset from a dollar to thousands of dollars with nothing underlying. Therefore, if there is no legal and regulatory framework on how financial institutions deal with these issues, then we will leave Kenyans exposed. That is why it has become imperative that we have a regulatory and legal framework as a country. It is against this backdrop that the National Treasury in January, 2025 published the National Policy on Virtual Assets and Virtual Asset Service Providers. The policy lays out a national vision for a secure, inclusive and innovative digital asset economy. It calls for a coordinated regulatory framework led by CBK, the CMA and the Competition Authority of Kenya (CAK). It is also grounded in a public-private collaboration, bearing in mind that many virtual assets are not traded by Government or their trade regulated by Government. It calls for a multi-pronged approach involving CMA, the Communications Authority of Kenya (CA) and CAK and to have a legal and regulatory framework to anchor the policy into law. That is what this Bill seeks to do. It seeks to implement the policy to bring clarity to operators, protect consumers and ensure credibility in Kenya’s digital finance ecosystem to stem the abuse that has been there. I do not want to go into all the details of the Bill, because the Chairman has clearly elaborated what is provided in it. Allow me to draw Members’ attention to Part II of the Bill, which designates CMA, CBK and any other public body approved by the Cabinet Secretary to license virtual assets service providers and regulate, supervise and monitor the promoters of virtual assets. The part also provides for a system of mandatory licensing of persons and businesses. This will ensure that we stem the culture that has been there. I have seen young people who have just finished college purporting to trade in virtual assets, but nobody The electronic version of the Official Hansard Report is for informationpurposes only. A certified version of this Report can be obtained from the Hansard Editor."
}