In a pivotal move underscoring its shift in stance toward cryptocurrency, Kenya has enlisted U.S.-based Marathon Digital.
Announced by President William Ruto at the recent AMCHAM Business Summit in Nairobi, this partnership aims to propel Kenya forward in crypto regulation and address the energy demands of crypto mining.
Kenya Partners With Marathon Digital: What to Expect
Once cautious, Kenya now embraces the digital currency revolution. The Central Bank of Kenya (CBK) and other bodies had previously opposed cryptocurrencies as mainstream financial tools. In fact, in August 2023, the country established a committee to investigate Worldcoin and had been calling for a halt to its operations.
At the summit, President Ruto underscored Marathon Digital’s critical role. The company will work with Kenya’s National Treasury and the Ministry of Energy to craft robust cryptocurrency regulations and manage energy demands for mining. This clear assignment of duties boosts confidence in the partnership’s effectiveness.
“This is a strong testament of the vast transformative possibilities that exist in an expanded and comprehensive strategic understanding between the U.S. East Africa concerning trade and investment.” President William Ruto said.
This initiative follows several regulatory steps in Kenya. The Capital Markets Bill, passed by the Kenyan National Assembly in December 2023, establishes a taxation system for crypto exchanges and wallets akin to traditional banks. Also, a multi-agency team is developing regulations for virtual assets and their managers.
Read more: Is Crypto Mining Profitable in 2024?
A recent Central Bank risk assessment highlighted significant risks, including money laundering and terrorist financing. The 2022 anti-money laundering report marked crypto and their providers as high-risk areas. With this partnership, Kenya is poised to harness the transformative potential of crypto, balancing innovation with the need for regulation
Moreover, partnering with Marathon Digital strategically boosts Kenya’s global crypto market position. This partnership aims to refine crypto policies and energy management by leveraging the company’s expertise in large-scale mining operations.
Additionally, Marathon Digital and the government’s dialogue is set against increasing regulatory clarity and market maturity.
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