Though CBK hasn’t said virtual currency is illegal; said it’s not legal tender, and essentially that they can’t be expected to step in. Maybe not a bad thing?

On 15 Dec 2015, at 12:00, kictanet-request@lists.kictanet.or.ke wrote:

Send kictanet mailing list submissions to kictanet@lists.kictanet.or.ke

To subscribe or unsubscribe via the World Wide Web, visit https://lists.kictanet.or.ke/mailman/listinfo/kictanet or, via email, send a message with subject or body 'help' to kictanet-request@lists.kictanet.or.ke

You can reach the person managing the list at kictanet-owner@lists.kictanet.or.ke

When replying, please edit your Subject line so it is more specific than "Re: Contents of kictanet digest..."

Today's Topics:

1. Re: Public Notice by CBK on Virtual Currencies (Ali Hussein)

----------------------------------------------------------------------

Message: 1 Date: Tue, 15 Dec 2015 11:49:30 +0300 From: Ali Hussein <ali@hussein.me.ke> To: KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke> Subject: Re: [kictanet] Public Notice by CBK on Virtual Currencies Message-ID: <7B111466-78AE-4677-9A0B-B165AEFED676@hussein.me.ke> Content-Type: text/plain; charset="utf-8"

Waithaka

I concur with you. 150%

Regulators the world over need to get on with the Program. Virtual Currencies are here to stay. Instead of fighting them and driving them underground find a way to work with the new dispensation.

This is a fight the CBK will NEVER win. That you can take to the Bank. (Pun intended).

Thanks & Regards

Ali Hussein ali@hussein.me.ke

+254 713 601113 Twitter: @AliHKassim Skype: Abu-Jomo LinkedIn: http//ke.linkedin.com/in/alihkassim Blog: www.alyhussein.com

...

On Dec 15, 2015, at 11:07 AM, Ngigi Waithaka via kictanet <kictanet@lists.kictanet.or.ke> wrote:

Very dicey...

Let's see... What is MPesa? It's a Virtual Currency that has a 1:1 Mapping with the Kenya Shilling. That's why when I send you MPesa, you don't receive a legal tender, but you know you can convert it to KES at a rate of 1:1 minus the small charges.

What is Paypal? a Virtual Currency that has a 1:1 mapping with say USD

What is BitCoin? A Virtual Currency that has a *fluctuating* mapping with other currencies e.g 1:130 with USD.

If I take the risk that BitCoin might fluctuate, a risk we also take when we get paid in USD / Euros etc when in Kenya, why should it be illegal?

Its just a Virtual Currency, one of many....

Regards

On Tue, Dec 15, 2015 at 10:00 AM, Josiah Mugambi via kictanet <kictanet@lists.kictanet.or.ke <mailto:kictanet@lists.kictanet.or.ke>> wrote: CBK has taken a stand:

https://www.centralbank.go.ke/index.php/news/464-public-on-virtual-currencie... <https://www.centralbank.go.ke/index.php/news/464-public-on-virtual-currencies-such-as-bitcoin>

Extract:

++++

The attention of the Central Bank of Kenya (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. Some of the risks associated with buying, holding or trading virtual currencies include the following: ? Transactions in virtual currencies such as bitcoin are largely untraceable and anonymous making them susceptible to abuse by criminals in money laundering and financing of terrorism. ? Virtual currencies are traded in exchange platforms that tend to be unregulated all over the world. Consumers may therefore lose their money without having any legal redress in the event these exchanges collapse or close business. ? There is no underlying or backing of assets and the value of virtual currencies is speculative in nature. This may result in high volatility in value of virtual currencies thus exposing users to potential losses.

CBK reiterates that Bitcoin and similar products are not legal tender nor are they regulated in Kenya. The public should therefore desist from transacting in Bitcoin and similar products. ++++

-- Josiah Mugambi

_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke <mailto:kictanet@lists.kictanet.or.ke> https://lists.kictanet.or.ke/mailman/listinfo/kictanet <https://lists.kictanet.or.ke/mailman/listinfo/kictanet>

Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/ngigi%40at.co.ke <https://lists.kictanet.or.ke/mailman/options/kictanet/ngigi%40at.co.ke>

The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.

KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.

-- Regards,

Waithaka Ngigi Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod Building T +254 20 525 0750 |Office Mobile: +254 716 201061 | M +254 737 811 000 <> www.at.co.ke <http://www.at.co.ke/> _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet

Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.com

The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.

KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.