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.