IMF recommended that Kenya overhaul outdated regulations, address scams and align its crypto framework with global standards for financial stability.
The International Monetary Fund (IMF) advised Kenya to create a clear, predictable regulatory environment for the cryptocurrency market to protect consumers and address risks related to Anti-Money Laundering (AML) and Combating the Financing of Terrorism(CFT).
On Jan. 8, the IMF released a technical assistance report on Kenya’s crypto regulations, following a request from the Capital Markets Authority (CMA) of Kenya.
The IMF noted that Kenya relies on outdated regulations for traditional markets that have “limited and no legally binding” leverage over crypto markets. As a result, the East African nation has seen an uptick in crypto-related scams and other criminal activity.
