The Model of Regulation for Virtual Currencies in Kenya
Abstract
This study examines Kenya’s style of regulating virtual currencies and their attendant
transactions. It proposes that the adoption of regulative and legislative precepts will be ultimately
beneficial for Kenya’s fiscal market. The study explores the legal features and taxonomical
approaches to classifying virtual currencies. It undertakes a benchmarking approach by exploring
styles of regulating virtual currencies by other States noting challenges to be learned from and
positive regulative highlights to be emulated by Kenya. This study proposes that stifling the
growth of virtual currency use in Kenya is not beneficial to its economy and will only make
virtual currencies attractive to criminal schemers and masterminds. The study provides reasons
why Kenya should dedicate its resources to research and comprehend virtual currency
transactions to come up with regulatory measures that will strengthen and improve the economic
status of its economy. The study suggests that Kenya should recognize virtual currencies as
mediums of payment for purposes of regulation. The study also points out the fact that virtual
currency businesses and transactions could be a source of revenue for the country to tap into. It
further suggests that proactively regulating virtual currencies by enacting new laws or amending
existing laws will make the currency attractive to law-abiding citizens who wish to transact in
virtual currency.
Publisher
University of Nairobi