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{
    "id": 1583331,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1583331/?format=api",
    "text_counter": 289,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": null,
    "content": "regulates them. They also do online marketing of virtual assets. They are very tech-savvy and can rope in very many people within a short period and collect a lot of money, then within a short time the whole thing collapses and innocent Kenyans lose their money. Kenyans have been accusing the Government and asking what it has been doing. The Government wants to make sure that there is a legal framework to license traders in virtual assets. For instance, those trading in forex are under the regulation of CBK. Those dealing with equities will fall under CMA or whichever relevant regulatory body. To protect consumers, Part IV of the Bill requires that virtual asset service providers must maintain adequate safeguards for client assets and obtain appropriate insurance cover. This will ensure that in the event of fraud or operational failure, consumers can receive compensation. Additionally, virtual asset service providers must maintain a bank account in Kenya to enable effective monitoring and oversight. As I said earlier, many of the challenges Kenyans have encountered are because of the lack of a regulatory framework. It is not clear how to get your money back from a virtual asset trader if you need to. Before this policy was enacted, there was no framework. The Bill will ensure there are adequate safeguards like in the insurance industry that has the Premium Holders’ Compensation Fund. In case an insurance company collapses, there is a fall-back plan. Banks in this country have either an insurance bond or a cash guarantee in another financial institution to secure people’s deposits. But virtual assets trading has operated in a space where nobody can guarantee you. People have been sending money to bank accounts outside this country but there is no guarantee that they are protected. By maintaining a local bank account, it will become easy for CBK to monitor what is going on and protect investors in virtual assets."
}