The Information, Communication, and Technology (ICT) committee of the Kenyan Senate has declared that it is prepared to work with the Central Bank of Kenya (CBK) and other stakeholders to develop the nation’s policy toward crypto assets and companies that provide services for virtual assets. Such a policy, in the committee’s words, “ensures Kenya harnesses the benefits of financial innovation while minimizing the risks” in the country’s use of cryptocurrency assets.

In an effort to establish Kenya’s policy toward virtual asset service providers (VASPs) and “the use of crypto assets in Kenya,” a Kenyan Senate committee recently announced that it has resolved to cooperate with the Central Bank of Kenya (CBK) and other stakeholders.

The Senate’s Committee on Information, Communication, and Technology argued in a statement shared via Twitter that the implementation of such a policy will enable Kenya to reap the rewards of innovation.

The Committee on Information, Communication & Technology, Chaired by Sen. Allan Chesang, has today resolved to engage with the @CBKKenya and other stakeholders to come up with a policy regarding virtual assets service providers and use of crypto assets in Kenya. pic.twitter.com/Q37fiqKRvq

— Senate of Kenya (@Senate_KE) February 16, 2023

“While considering the response received from the CBK regarding the Committee’s inquiry on digital assets infrastructure in Kenya at Parliament Buildings, the Members of the Committee emphasized the need to have a laid down policy that governs the Central Bank Digital Currency and crypto assets in the country to ensure Kenya harnesses the benefits of financial innovation while minimizing the risks,” the Senate tweeted.

Two months after the Joint Financial Sector Regulators’ Forum (JFSRF) stated it would consider forming a technical working group with the charge of recommending the creation of a crypto regulatory framework, the Senate committee made its announcement.

As explained in the JFSRF’s joint communique issued on December 16, 2022, the recommendations will be subsequent to wide consultations and deliberations across the financial sector and other relevant stakeholders.

Communique on the 13th Joint Financial Sector Regulators' Board Meeting pic.twitter.com/E6Sa1Jzg1U

— Central Bank of Kenya (@CBKKenya) December 16, 2022

The five-member Kenyan regulators’ forum stated that in addition to the recommendation regarding cryptocurrencies, it has also decided to coordinate the creation of a framework that encourages the adoption of new technologies and innovations in the financial services industry. This aids in “improving effective regulation and supervision.”