Kenya's Central Bank Chief Warns Again On Crypto Risks

Central Bank of Kenya (CBK) is now in line with other banks in blacklisting digital currencies and warns customers and banks dealing with it.

AccessTimeIconApr 13, 2018 at 12:30 p.m. UTC
Updated Sep 13, 2021 at 7:49 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Central Bank of Kenya (CBK) is once again seeking to dissuade domestic businesses from dealing in cryptocurrencies.

Following what the institution called massive price volatility in the sector, the national bank has issued a circular to financial institutions on the subject, a development revealed in an appearance by the governor of the CBK before the nation's parliament, domestic news outlets report.

In statements, Patrick Njoroge, the governor of the national bank, sought to expand on past public statements, including a notable one in November in which he warned investors similarly.

He said this week:

"There are risks associated with cryptocurrency particularly on consumer protection, fraud, hacking and loss of data and they are prone to be used as pyramid schemes."

Njoroge went on to allege that the features of cryptocurrencies make them vulnerable to money laundering and terrorist financing, while mentioning that emerging technologies are broadly prone to risks.

As such, Njoroge's comments build on the public statements from senior African officials. Countries such as Zimbabwe and Namibia , for example, have sought to brand the technology as illegal, while Zimbabwe's central bank said in November that cryptocurrency "is not actually legal."

Kenyan map via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.