The government announced plans to form a Technical Working Group of concerned regulators to make recommendations to the Treasury Cabinet Secretary Njuguna Ndung'u.
This task force will establish a comprehensive oversight framework on crypto assets activities and players in Kenya.
"All recommendations will be subsequent to wide consultations and deliberations across the financial sector and other relevant stakeholders," read part of the statement dated Friday, December 16.
The announcement was made during the 13th Joint Financial Sector Regulators Forum (JFSRF) held between December 13 and 16, 2022.
At the forum was the Capital Market Authority (CMA), Central Bank of Kenya (CBK), Insurance Regulatory Authority (IRA), Retirement Benefits Authority (RBA), and the Sacco Societies Regulatory Authority (SASRA).
The leaders recognised the significant policy changes that have altered the business and regulators' operating environment.
Additionally, the leaders resolved to coordinate the development of a framework for promoting the adoption of technology and innovations in the financial services sector to enhance effective regulation and supervision.
Kenyans, in November 2022, lost millions of shillings as the FXT crypto exchange company crashed, prompting the need for regulations.
In February 2022, the Central Bank of Kenya announced plans to introduce digital currencies in Kenya.
"The transition to digital payments has been accelerated by the proliferation and easy access to mobile devices, as well as the emergence of Fintech firms that constantly innovate new products to run on these devices," CBK noted.
In July 2022, the United Nations advised the government to ban advertisements of cryptocurrency businesses on social media.
UN's advice followed a report that ranked Kenya fifth in digital currency ownership worldwide.
"This new type of virtual, and often disguised, advertisement requires policymakers to expand the scope of regulation beyond traditional media," the UN noted.
