Kenya’s central bank governor reiterated to Kenyans that they should be cautious about cryptocurrency trading and transactions. Financial institutions that support cryptocurrency transactions could lose their licenses, the governor warned.
Crypto Trading is Beneficial for a Few
Patrick Njoroge (the governor of Central Bank of Kenya) reiterated his opposition to cryptocurrency transactions. He also advised Kenyans to avoid investing in volatile assets such as cryptocurrency.
In remarks published by the East African newspaper, Njoroge — who was addressing Kenyans that attended the World Consumer Rights Celebration Day — suggested that investing in cryptocurrencies is only beneficial to a few people. He explained:
People are very excited about crypto because they think it’s a great investment because the prices will go up rapidly and they expect a large return on their money. That is also why I think we have to say that every winner has hundreds of losers.
Njoroge pointed out, too that cryptocurrency transactions may not be regulated and could even be considered illegal. The governor is quoted in the Kenyan newspaper’s report warning financial institutions that are caught facilitating cryptocurrency transactions that they risk losing their licenses.
Protection of the Public
As previously reported by Bitcoin.com News, the CBK chief had clarified that the bank’s stance on cryptocurrencies had not changed, even as more Kenyans are being drawn to digital currencies. Reports out of Kenya suggest that CBK warned clients involved in cryptocurrency trading by urging them to take precautions.
The East African report states that the CBK won’t encourage crypto transactions unless the government has enough protections.
“We are working with other players and regulators around the world to make sure that space is safe,” Njoroge was quoted explaining.
Let us know your opinions on the story. Let us know what you think by leaving comments below.
Images CreditsShutterstock. Pixabay. Wiki Commons. Mary MM
DisclaimerThis information is provided for educational purposes only. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.