Cabinet Secretary for Interior and Administration of National Government, Prof. Kithure Kindiki has hinted at a government ban on cryptocurrency. Citing challenges to monitor and regulate the currency, the CS alluded crypto maybe used to fund illegal activities.
“There is a correlation between cryptocurrency, money laundering, and financing of terrorism. There exists a legal and regulatory gap in cybersecurity and cybercrime prevention in the Data Protection Act No. 18 of 2021.” stated CS Kindiki.
He stated the “grey areas” in the source of income for crypto traders. Additionally, the cash generated from crypto trade eventually finds a way into formal financial structures. The lack of formal routes to track cryptocurrency led Kindiki to state the government is “reluctant “to allow Kenyans to continue venturing into the trade.
Currently, a task force has been established to develop regulations under the Computer Misuse and Cybercrimes Act, of 2018. Therefore, it is expected the proposed regulations will help address gaps in cybersecurity and cybercrime prevention and give full effect to the Act.
The CS statement comes a week after the Communications Authority Director General Mr. Ezra Chiloba recommended regulatory sandboxing on complex issues like Worldcoin to nurture innovation in a safe, secure environment for socio-economic development.
Kindiki Says Government is Investigating Worldcoin
The CS was speaking to the National Assembly Ad-Hoc Committee on the inquiry into the activities and operations of Worldcoin in Kenya chaired by Hon. Gabriel Tongoyo.
He stated that investigations on Worldcoin are ongoing. The CS has promised that those found culpable shall be prosecuted in accordance with the law.
“Anyone in government or out of government, in the private sector or public sector who it’s established aided, supported, encouraged or even attempted to support any of those things in relation to Worldcoin, we will hold them accountable,” he said.
Kenya Security agencies have recovered assorted documents and recorded twenty-six (26) statements from witnesses and other persons of interest. Notably, the investigations will be expedited in consideration of the public interest and national security concerns.
For now, Forty-eight (48) orbs, electronic gadgets, and Worldcoin operations assorted merchandise recovered from Worldcoin agents are undergoing forensic analysis.