Kenyan Crypto Adoption and Trading Grows Despite Warnings from Regulators
Over the last 2 years, the Kenyan government and reserve bank have actually been discussing how to regulate bitcoin and other digital currencies. In March 2018, the Central Bank of Kenya warned the general public about cryptocurrency financial investments. After those warnings, the area’s Capital Markets Authority (CMA) warned the general public again after investigating a project called kenicoin. Even though financial regulators are dressing down digital currencies, Kenyan merchants and traders in the region are still flocking towards the crypto asset economy.
Kenyan Crypto Trade Volumes Show Increased Demand for Digital Assets
The federal government in Kenya and the financial regulators have actually been wary towards managing bitcoin and other digital currencies. The reserve bank mulled over regulative standards in the summertime of 2018, while last month Kenya’s Capital Markets Authority (CMA) warned the public about trading digital currencies because of an initial coin offering (ICO) called kenicoin. The project presumably offered 10 million tokens and assured 10 percent month-to-month returns after the initial purchase. Nevertheless, even though Kenya’s financial guard dogs are warning against investing and trading cryptocurrencies, they have actually been helpless to stop the steady trend of cryptocurrency approval and rising trade volumes within the country.
Kenyans have a wide array of exchange opportunities to choose from if they wish to buy cryptocurrencies like bitcoin. This includes popular trading platforms like Remitano, Bitpesa, Coindirect, Paxful, Localbitcoins, and Belfrics. Localbitcoins volumes in Kenya have been consistently strong. At the time of composing, BTC trade volumes for Feb. 16, 2019 indicate 29,701,339 Kenya shillings ($297,000) traded on Localbitcoins in Kenya over the last 2 weeks. Paxful trade volumes in Kenya shillings (KES) are also significantly greater than typical with 4,679,664 KES ($48,000) traded over the last two weeks on the peer-to-peer exchange. According to Crypto Compare’s BTC sets analysis, bitcoin core (BTC) purchases represent $3,418 (KES 341,876) in daily trades stemming from Stocks exchange.
Merchant approval is still growing in Kenya as well, according to a report from the BBC news outlet released on Feb. 22. The Blockchain Association of Kenya (BAK) explained in an interview that digital currency awareness has increased, despite regulators in the region cautioning about trading them. BAK information that Kenyans are using bitcoin and other digital assets to pay for education in Kenya and Nigeria and to purchase products in China and bitcoin is likewise empowering many Kenyan freelancers. The not-for-profit company believes blockchain-based currencies can lower transaction costs and enhance local remittances.
Last December, news.Bitcoin.com reported on the Healthland Spa in Nairobi which started accepting BTC for payments for goods and services. This year Tony Mwongera, Healthland Spa’s chief executive, explained he uses the virtual currency generally to avoid theft, however, the business also delights in the convenience.
“I chose to embrace the use of cryptocurrencies because there was so much theft in my service,” Mwongera informed reporters on Friday. The medical spa owner continued:
So I said, let me use a way that can be safe, secure and I can also embrace technology.
Kenya’s Capital Markets Authority Thinks Blockchain Firms Are Okay as Long as ‘They Don’t Deal With Cryptocurrencies’
Kenya’s BAK is likewise hosting a World Blockchain Summit in Nairobi on March 20 in order to reinforce cryptocurrency solutions and blockchain technology in the nation. Nevertheless, Kenya’s CMA is likewise organizing a monetary technology incubation platform set to release this May, but cryptocurrency projects and developers are disallowed from going to the sandbox. The CMA president Paul Muthaura specified last Thursday that the company would assess dispersed ledger projects under specific conditions.
“In the validation, we have 70 companies, some from outside Kenya. Blockchain companies will be considered so long as they are not handling cryptocurrencies given that the CMA’s requirement does not encompass currency,” Muthaura said.
Muthaura repeated what the CMA and Kenyan central bank highlighted in the past: that cryptocurrencies have zero oversight and regulators could not assist retail investors with monetary losses. On Thursday the CME executive said he believes digital assets bring brand-new risks to the world of finance that can destabilize traditional markets and perhaps harm retail financiers a great deal. Despite the warnings, statistics and tales of merchant adoption suggest that Kenyan crypto traders and bitcoin volumes continue to thrive in 2019.
What do you think about cryptocurrency trade volumes in Kenya rising despite the warnings from the central bank and CMA? Let us know what you think about this subject in the comments section below.
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