Regulatory Alerts2015-12-18
Banking Circular No 14 of 2015 - Virtual Currencies - Bitcoin
The Central Bank of Kenya (CBK) has issued a banking circular warning commercial banks, mortgage finance companies, and microfinance institutions against dealing in virtual currencies or transacting with entities involved in such activities. It informs that virtual currencies like Bitcoin are not legal tender in Kenya, lack government or central bank issuance or guarantee, and may involve high risks due to their anonymous nature, susceptibility to criminal abuse, lack of legal redress for consumers, unregulated trading platforms, and speculative value fluctuations. The CBK has expressly advised financial institutions against opening accounts for individuals dealing in virtual currencies, with non-compliance leading to appropriate remedial action.