Stablecoins are scaling rapidly in Kenya, while regulators debate oversight, taxation and systemic risk in evolving financial architecture.
Kenya’s crypto market has moved beyond speculation into mainstream utility, with industry estimates placing stablecoin transactions at $500 million monthly. The Central Bank of Kenya maintains cryptocurrencies are not legal tender, even as a 2023 digital asset tax formalised fiscal oversight before a comprehensive framework was enacted.
Regulatory ambiguity remains. If stablecoins function as payment instruments, they fall under central bank supervision. If classified as securities, the Capital Markets Authority takes the lead. Fragmented oversight risks gaps, uncertainty and regulatory arbitrage.
With African remittances nearing $100 billion annually, stablecoins offer faster, cheaper cross-border transfers. Lawmakers now face a clear choice: unified regulation or piecemeal adjustments as adoption accelerates.
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