Tag Archives: crypto

How Kenya Plans to Lead Africa in Cryptocurrency Regulation

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Kenya is boldly stepping into the digital finance arena by moving to legalize cryptocurrencies, marking a departure from its previously restrictive stance on digital assets. Driven by Treasury Cabinet Secretary John Mbadi, this initiative aims to capture the economic potential of the burgeoning underground crypto market. The proposed regulatory framework seeks to strike a balance between fostering innovation and ensuring robust consumer protection, addressing risks such as money laundering and cybercrime. By leveraging its advanced mobile money infrastructure, Kenya plans to integrate blockchain technology into key areas such as logistics and supply chain management, enhancing transparency and efficiency.

A report by Mrwhosetheboss

The country’s strategic push positions it to lead in digital finance, aiming to enhance financial inclusion and streamline international trade through a competitive cryptocurrency market. Central to this effort is the adoption of global standards, as emphasized by the International Monetary Fund (IMF), which advises aligning Kenya’s regulatory framework with international norms including the IMF/World Bank Bali Fintech Agenda. The framework should address existing risks and enhance cross-sector cooperation for market oversight. It underscores the need for legal certainty and cross-border regulatory arrangements. Additionally, the government must focus on financial literacy to safeguard against scams, as it also seeks to increase tax revenues from the crypto sector, targeting KSh 60 billion, a significant rise from the previous KSh 10 billion.

Despite these ambitions, challenges remain, particularly concerning infrastructure gaps and low public awareness of cryptocurrency risks. The volatility of digital currencies also poses challenges for investors. The government is prioritizing education and navigating internal debates over regulations like the Capital Markets (Amendment) Bill 2023. Kenya’s actions mirror a wider continental trend, joining African nations such as Nigeria, where stablecoins are combating inflation, and South Africa, which is blending traditional finance with cryptocurrency under clear regulatory guidance. Kenya stands at a pivotal juncture, poised to reshape its economic landscape while setting a standard for digital innovation and regulation across Africa. Through strategic implementation and international collaboration, Kenya is geared to lead Africa into a new era of digital finance.

References:

Finance Magnates Kenya Drafts Policy to Legalize Cryptocurrencies, Expand Digital Economy

Live Bitcoin News Kenya Plans to Legalize Cryptocurrencies with New Policy

Africa Logistics Kenya’s Move to Legalize Cryptocurrency: A Game-Changer for Logistics in Africa

Africa Tech Summit The State of Crypto in Kenya

Business Daily Kenya moves to regulate Bitcoin trade on grey listing risk

Crypto Briefing Kenya set to legalize crypto, says Finance Minister John Mbadi

Cointribune Crypto: IMF Urges Kenya to Align with Global Regulations

The Star Kenya’s Digital Gold Rush: The Rise of Cryptocurrency Trading

MSN IMF lists recommendations to manage crypto in Kenya, offers to support govt in policy framework

Observer Voice IMF Urges Kenya to Strengthen Crypto Regulations

Business Daily Why Kenya should prioritise passing of crypto regulations




Cryptocurrency Security: Persistent Threats and Measures for Continuous Improvement

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Crypto hacking incidents have shown fluctuating trends in 2024. Early in the year, a report revealed that hackers stole $1.7 billion in 2023, highlighting the growing threat. The RegTech Times reported that in Q1 2024, losses dropped by 23% compared to the same period in 2023, with total losses amounting to $336.3 million. Despite this reduction, crypto hacking still accounted for 96% of all incidents, reflecting the ongoing security challenges in the cryptocurrency industry. In February alone, over $67 million was stolen in 12 attacks on DeFi platforms, showcasing the sector’s vulnerability due to its decentralised nature and complex security needs.

10 Tampa Bay News Report

The first half of 2024 saw a significant rise in crypto thefts, with $1.4 billion stolen by hackers, according to a July 5 Reuters report. This sharp increase was attributed to sophisticated hacking techniques targeting digital assets. On the same day, Punch Nigeria reported data from DeFiLlama indicating that $664 million was stolen from crypto investors in the first six months of 2024. Chainalysis further highlighted that, despite enhanced security measures, substantial funds were still being stolen, underscoring the persistent threat to the cryptocurrency ecosystem. DeFi, or decentralised finance, platforms are blockchain-based systems that offer financial services without traditional intermediaries like banks. These platforms enable activities such as lending, borrowing, and trading through smart contracts, which are self-executing contracts with the terms directly written into code. The consistent targeting of DeFi platforms, with major breaches including $32.5 million from Playdapp and $26.1 million from Fixedfloat, emphasised the need for improved defenses.

These incidents underscore the critical need for continuous improvement in cybersecurity measures within the cryptocurrency sector. While there has been some success in reducing overall losses, the sophistication of attacks and the particular vulnerability of DeFi platforms remain significant challenges. The industry must evolve its security protocols, foster greater collaboration among stakeholders, and enhance user education to better protect against these persistent threats. The resilience of the cryptocurrency market will depend on its ability to adapt and fortify against an ever-evolving landscape of cyber threats.

References:

Reuters Crypto hacking thefts double to $1.4 bln in first half of 2024, researchers say

Punch Hackers steal $664m from crypto investors in six months – DefiLlama

Chainalysis Funds Stolen from Crypto Platforms Fall More Than 50% in 2023, but Hacking Remains a Significant Threat as Number of Incidents Rises
Reuters Crypto hackers stole around $1.7 bln in 2023 – report

RegTech Times Crypto Hacking Report for Q1 2024: Insights and Trends on declining incidents