The United Nations (UN), an intergovernmental body that upholds international stability and security, recommended Kenya and other developing country governments establish thorough laws for their cryptocurrency industries.
A recent policy brief recommended a number of developing nations, including Kenya, impose strict regulations on the sector, require mandatory registration on crypto exchanges, and tax individuals who have made a profit trading bitcoin or other cryptocurrencies. The UN advocated the following in an effort to force an industry crackdown:
“Require the mandatory registration of crypto-exchanges and digital wallets and make the use of cryptocurrencies less attractive, for example, by charging entry fees for crypto exchanges and digital wallets and/or imposing financial transaction taxes on cryptocurrency trading.”
The UN subsequently recommended that no banks or other financial organizations remain to hold stablecoins or other digital assets for their customers.
Would Kenya welcome the UN’s suggestion?
It’s possible that the African nation won’t welcome the UN initiative with much enthusiasm. With the rising adoption of cryptocurrencies in Africa, Kenya leads the continent in crypto adoption, as per a report by the same organization, with 4.25 million citizens, or 8.5% of the population, admitting to being crypto investors.
However, the UN noted that due to a lack of regulation in the area, determining the value of digital currencies held by various countries is challenging.
This adoption rate, which was higher than that of developed economies like the United States (8.3 percent), supports the theory that less developed countries are seeing a more acceleration in digital assets adoption.
Moreover, last year’s report by Broker Chooser ranked Kenya as the fourth most crypto-interested country in the world, as TheCoinRise reported.
As with other speculative trades, “the returns from cryptocurrency trading and holding are highly individual.” Overall, the UN believes that the risks and expenditures they present in developing nations outweigh them.