The governor of the Kenyan central bank has once again asked Kenyans to be wary of the risks associated with cryptocurrency trading and trading. The governor also warned financial institutions that support cryptocurrency trading that they run the risk of losing their licenses.
Crypto Trading Beneficial for Some
central bank of kenya[CBK]Governor Patrick Njoroge has reiterated that his institution still opposes cryptocurrency trading. The governor also suggested that Kenyan citizens should always be wary of investing in highly volatile asset classes such as cryptocurrencies.
In comments published by Njoroge, an East African newspaper – who was addressing Kenyans attending World Consumer Rights Day celebrations – suggested investing in cryptocurrencies is only beneficial to a few. He elaborated:
There are people who are excited about cryptocurrencies because they see it as a type of investment they can make to win big. Will see a big return for But I guess that’s why we say that for everyone who wins, there are hundreds who lose.
Njoroge also pointed out that crypto transactions are not only unregulated but such transactions can also be illegal. The governor was quoted in a Kenyan newspaper report warning financial institutions that have been caught facilitating cryptocurrency transactions that they risk losing their licenses.
protect the public
As previously reported by Bitcoin.com News, the CBK chief clarified that the bank’s stance on cryptocurrencies has not changed, even as more Kenyans are being drawn to the digital currency. Earlier, reports from Kenya speculated that CBK had persuaded some banks to issue warning alerts to customers engaged in cryptocurrency trading.
However, according to the East African report, CBK will only encourage cryptocurrency trading if there are adequate safeguards in place to protect the public.
“We are working with other players and regulators around the world to ensure the space is safe,” Njoroge was quoted as explaining.
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