Kenya’s Cryptocurrency Partnership with Marathon Digital
In a significant shift towards cryptocurrency, Kenya has partnered with U.S.-based Marathon Digital. President William Ruto announced this collaboration at the AMCHAM Business Summit in Nairobi, focusing on crypto regulation and addressing energy demands for mining.
Changes in Kenya’s Stance Towards Cryptocurrency
- Kenya previously had a cautious approach to cryptocurrencies, with the Central Bank of Kenya and other institutions viewing them skeptically.
- An investigative committee was established in August 2023 to look into Worldcoin operations.
- The partnership with Marathon Digital signals a new era of acceptance and collaboration in the crypto space.
The Role of Marathon Digital in Kenya’s Crypto Landscape
- Marathon Digital will collaborate with Kenya’s National Treasury and Ministry of Energy to develop robust crypto regulations and manage mining energy requirements.
- This clear division of responsibilities enhances the effectiveness of the partnership.
- President Ruto emphasized the transformative potential of closer ties between the U.S. and East Africa for trade and investment.
Regulatory Developments in Kenya
- The Capital Markets Bill passed in December 2023 introduced a taxation system for crypto exchanges and wallets, bringing them in line with traditional banking practices.
- A regulatory team is working on frameworks for virtual assets and their management to ensure compliance and safety.
Is Crypto Mining Profitable in 2024? Learn more: Link
The Central Bank’s risk assessment identified money laundering and terrorist financing as significant concerns related to cryptocurrencies. Previous reports highlighted crypto as high-risk areas for illicit financial activities. The partnership with Marathon Digital positions Kenya to harness the transformative power of crypto while maintaining regulatory oversight.
Strategic Implications of the Partnership
- Partnering with Marathon Digital enhances Kenya’s global standing in the crypto market and allows for the refinement of crypto policies and energy management.
- The collaboration supports Kenya’s goal of striking a balance between innovation and regulation in the crypto space.
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