The Central Bank of Kenya has warned citizens and anyone intending to transact with Bitcoin to think twice because the regulator does not recognize it.
In a Gazette Notice published in Kenya dailies and their website, CBK outlined risks associated with transacting using Bitcoin.
The following is a message from CBK:
“ (CBK) has been drawn to media reports on the use, holding and trading of virtual currencies such as Bitcoin in Kenya. Bitcoin is a form of un-regulated digital currency that is not issued or guaranteed by any government or central bank.
Domestic and international money transfer services in Kenya are regulated by the Central Bank of Kenya Act and other legislation.
In this regard, no entity is currently licensed to offer money remittance services and products in Kenya using virtual currency such as Bitcoin.
This is to inform the public that virtual currencies such as Bitcoin are not legal tender in Kenya and therefore no protection exists in the event that the platform that exchanges or holds the virtual currency fails or goes out of business”