Cryptocurrency Companies in Kenya are businesses and organizations that operate within the crypto currency
and blockchain technology space.

They engage in various activities related to crypto currencies, such as trading,
exchange services, block chain development, education, and more. These companies have emerged as a prominent
player in the country’s financial landscape, signaling a shift towards innovative financial technologies and a
growing interest in digital assets.

Kenya, like many other countries, has witnessed a surge in the adoption of crypto
currencies in recent years, and therefore, this topic holds significant relevance due to its impact on the Kenyan
economy, financial inclusion, and the broader global crypto currency market.

The Central Bank of Kenya (CBK) controls and regulates recognized currency, and for crypto currencies to be
considered currency, the CBK must recognize, sanction, and provide it legal existence as a matter of
constitutionality- without which the Crypto currencies fail the legitimacy test.

Comprehending crypto currencies in the context of taxes and regulations is crucial to ensure legal compliance,
financial transparency, and responsible use of digital assets. It protects individuals and businesses from legal
repercussions, promotes fair taxation, and contributes to the overall legitimacy and acceptance of crypto currencies
in the mainstream financial system.

Cryptocurrency Companies in Kenya regulatory landscape

The emergence and growth of crypto currency in Kenya have been notable in recent years. Kenya, like many other
countries, has seen increased interest and adoption of crypto currencies for various reasons. It’s important to note
that while crypto currencies offer opportunities for financial inclusion and innovation, they also come with risks,
including regulatory uncertainty, market volatility, and the potential for fraud.

The regulatory landscape in Kenya
may evolve as authorities assess the impact of crypto currencies on the country’s financial system and economy.
Overall, the emergence and growth of crypto currency in Kenya are driven by a combination of economic, technological, and social factors, reflecting a global trend toward the adoption of digital assets and block chain
technology.
The Central Bank of Kenya (CBK) has had a significant influence on Top Cryptocurrency Companies in Kenya. The
CBK’s approach to crypto currencies has influenced innovation in the industry. Some businesses in Kenya have
sought to operate within the bounds of existing financial regulations or explore regulatory-compliant solutions such
as block chain technology, which may have a different impact on adoption.

The CBK has also initiated a pilot program for a central bank digital currency. This demonstrates a willingness and openness to embrace digital currency technology under a regulated and controlled framework.
Kenya has seen a significant growth in crypto currency adoption and peer-to-peer trading.

Despite the risks associated with crypto currencies, such as volatility and potential for money laundering, Kenyans have embraced digital assets as a means of investment, international money transfers, and personal financial transactions.
Currently, the country has approximately 4 million crypto currency users, which accounts for about 8.5% of the
population. This gives Kenya the world’s fifth-highest rate of ownership.

Kenya ranks second in Africa and 19th globally in terms of crypto adoption, and fifth globally in terms of peer-to-peer exchange trade volume. Revenue in the Crypto currencies market in Kenya is therefore projected to reach US$12.01m in 2023.
This significant growth in crypto currency has resulted in a positive impact on Kenya’s economy. This has been
due to Crypto currency companies providing access to financial services for individuals who were previously
excluded from the traditional banking system, particularly in rural and underserved areas.

These companies have also led to job creation for tech-savvy Kenyan youth seeking employment opportunities in the technology and finance sectors. Crypto currency trading and investment activities have also generated economic activity, including trading fees, investment gains, and increased activity on local exchanges.

TOP 7 CRYPTO CURRENCY COMPANIES IN KENYA

1. AVA TRADE
Avatrade, a well-regulated broker, provides a reliable, user-friendly environment for trading crypto currency on its
innovative mobile app – AvaTradeGO. AvatradeGO allows traders to trade on more than 250 instruments,
including 8 crypto currencies on its mobile app.
Avatrade supports crypto currency trading 24/7, which means that traders can operate on the weekend.
Furthermore, unlike many other brokers that restrict clients by only allowing crypto to crypto trading, Avatrade
clients can trade cryptos against Fiat currencies (USD, EUR, and JPY).  Lastly, Avatrade offers some of the lowest
trading costs on crypto currencies, but leverage is limited to 20:1.

2. HFM (Hot Forex)
There are three main advantages of trading crypto with HFM: Leverage of up 1:50 is available on the most popular
pairs (such as BTC/USD and ETH/USD) and unlike Forex trading, crypto currency can be traded 24 hours a day
seven days a week. Finally, both the BTC/USD and the BTC/EUR are available on HFM’s dedicated copy trading
account, HFCopy. This is particularly good for traders who are new to the crypto currency market, which is
notoriously volatile. Copying more experienced crypto-traders allows beginners to understand the risks of trading
these markets while making a profit.

3. Eightcap
A well-regulated Australian broker, Eightcap offers low-cost trading on a broad range of crypto currency pairs on
the MT4 and MT5 trading platforms. With over 250 crypto currencies, Eightcap has one of the largest sets of
crypto pairs in the industry, including crypto-crosses and crypto indices. Eightcap also boasts some of the tightest
crypto spreads, with Bit coin at 12 USD per coin and Ethereum at 0.45 USD per coin. Additionally, leverage is

higher than many other crypto currency brokers, up to 20:1, where clients can open trading accounts with a 100
USD minimum deposit.

4. Admiral Markets
Admirals, formerly known as Admiral Markets, is an Australian broker offering trading on a wide range of assets,
including 40+ Forex pairs, 32 crypto currency CFDs, metals, energies, commodities, indices, shares, ETFs, and
bonds. Crypto currency trading is offered on both the MT4 and MT5 trading platforms, but traders can only choose
between four crypto pairs on MT4.

For the full range of 32 crypto currencies, traders must use MT5. Crypto currency assets include 22 crypto currency pairs crossed with Fiat currencies and 10 crypto currency cross pairs. The minimum deposit on the trading accounts is 100 EUR/GPB/AUD, leverage on crypto is up to 2:1, and trading is open 24/7 on pairs with EUR and digital crosses. No commissions are charged.

5. BDSwiss
A well-regulated market maker, BDSwiss offers 20 crypto currency pairs available for trading, including Bit coin,
Litecoin, Ripple, and Ethereum. No commissions are charged, and BDSwiss offers leverage of up to 5:1.  With a
broad range of other tradable assets on three live accounts, BDSwiss offers full support for MT4, MT5, and its
bespoke BDSwiss Web trader application, featuring an extensive set of analysis tools and advanced charting.
6. FBS
The FBS crypto account is a good option if you want to try trading crypto currencies. Bit coin, Ethereum, and other
digital coins are highly volatile, so traders can profit from rapid price movements. Moreover, unlike traditional
markets, crypto trading is available 24/7.

The FBS crypto account supports more than 100 instruments, including crypto coins, coin-fiat crosses, coin-coin crosses, and coin-metal crosses. FBS offers excellent trading conditions: low spreads, fixed leverage at 1:5, and easy deposits and withdrawals in both fiat and crypto.
7. IC Markets
A beginner-friendly broker famous for its raw Forex spreads, IC Markets also offers trading on 12 crypto currency
pairs. Crypto currency trading is available 24/7 and IC Markets provides 24/7 customer support, which is also great
for weekend traders and beginners who are trying to find their footing.

Leverage on crypto currencies is up to 5:1 and all fees are included in the variable spreads. IC Markets offers a broad range of trading platforms, including MT4, MT5, and cTrader. Beginners may also be interested in IC Markets’ copy trading platforms such as Zulu trade, and Myfxbook Auto trade.

 

REGULATORY ENVIRONMENT AND CHALLENGES

In Kenya, crypto currency is legal with no specific laws or regulations prohibiting its use or possession. However,
it is not recognized as legal tender or an asset. The Central Bank of Kenya has issued warnings without specified
penalties and has expressly forbade financial institutions and payment service providers from doing business with
Web3 businesses that ‘trade crypto currencies.’

The Capital Markets Authority has proposed regulations for ICOs and digital asset exchanges, but they are not yet implemented. Tax guidelines for crypto currencies are unclear, and the government has not provided specific incentives or support for block chain startups. While Web3 businesses lack explicit support in Kenya’s banking system, there is no prohibition either. Some banks tolerate crypto currency transactions and have partnered with block chain-based companies.

The Central Bank of Kenya has initiated a pilot program for a central bank digital currency, demonstrating openness to new
financial technologies. Consumer protection regulations are not comprehensive, but warnings have been issued by
the Central Bank of Kenya. Proposed regulations for ICOs and digital asset exchanges offer some level of
consumer protection.
Kenya has shown a trend toward stricter environmental regulations and efforts to combat tax evasion and
corruption, particularly given the nation’s need to increase its revenues with looming debt payments. Kenya’s
regulatory landscape for crypto currencies is primarily governed by the National Payments Systems Act, Capital

Markets Act, and Kenya Information and Communication Act. The Central Bank of Kenya oversees payment
systems, and trading crypto currencies is allowed. Kenya holds over $1.5 billion worth of Bit coin, indicating
acceptance.
Crypto currency companies in Kenya must obtain licenses to offer transmission services or face suspension of
banking services. Safaricom suspended M-PESA services of Lipisha Consortium Limited and Bitpesa for
unauthorized crypto currency transactions.
The Capital Markets Authority can regulate crypto currencies through securities regulations, classifying certain
crypto currencies as securities on a case-by-case basis. The aim is investor protection and financial stability,
applying the Howey test for classification.
Kenya introduced a digital service tax on crypto currency transactions, with traders now subject to income taxes at
a rate of 1.5%. Capital losses can be deducted by individuals with a permanent establishment in Kenya. The Kenya
Revenue Authority plans to create a unique tax agency for crypto currency taxes and digital service tax collection.

Overall, the Central Bank of Kenya, Capital Markets Authority, and Kenya Revenue Authority possess regulatory
power over crypto currency. The government strives for updated regulations and a favorable legal environment
while ensuring financial stability and addressing money laundering and terrorism financing risks.

Crypto currency companies in Kenya face several common challenges that can significantly impact their operations
and strategies. These challenges reflect the broader regulatory, economic, and technological landscape in Kenya.

Here are some of the common challenges faced by crypto currency companies in Kenya and their potential
impacts:
 Regulatory Uncertainty:
The lack of clear and comprehensive crypto currency regulations in Kenya creates
uncertainty for crypto currency companies. The Central Bank of Kenya (CBK) has issued warnings but
has not provided detailed guidelines for operating in the crypto currency space. Regulatory uncertainty can hinder investment and expansion plans. Crypto currency companies may need to allocate resources to navigate unclear regulatory waters, leading to slower growth and higher compliance costs.

 Banking Access:
Crypto currency companies often rely on traditional banks to maintain fiat currency accounts
and facilitate customer transactions. Some banks in Kenya may be hesitant to provide banking services to
crypto-related businesses due to regulatory concerns.
Difficulty in accessing banking services can disrupt daily operations, including fund management and customer transactions. Crypto currency companies may need to explore alternative banking solutions or rely more on peer-to-peer (P2P) transactions.

 Customer Education:
Many potential users and investors in Kenya may lack a clear understanding of crypto currencies and their associated risks and benefits. Education and awareness efforts are crucial for crypto currency
The need to educate customers can be resource-intensive. Crypto currency companies may need to allocate significant resources to provide user-friendly educational materials and support, impacting their operational costs.

 Security Concerns:
Security is a paramount concern in the crypto currency industry. Crypto currency companies
face the risk of hacking, fraud, and other security breaches.
Security incidents can result in financial losses, damage to reputation, and legal liabilities. To
mitigate these risks, companies must invest in robust security measures, which can be costly.
Compliance efforts can result in increased operational costs and may slow down customer
onboarding processes. Non-compliance can lead to legal issues and regulatory sanctions.

 Market Volatility:

The crypto currency market is known for its high volatility, which can affect the value of
digital assets and the profitability of trading operations.
Sudden price fluctuations can impact a company's financial stability and liquidity. Crypto
currency businesses must manage their exposure to market volatility through risk management strategies.

 Regulatory Changes:
Crypto currency regulations can change rapidly. Companies must adapt to new regulations
and compliance requirements.
Frequent regulatory changes can disrupt business operations and necessitate costly adjustments to
comply with evolving rules and reporting obligations.

Crypto currency companies in Kenya encompass a diverse range of businesses and startups operating within the
crypto currency and block chain space. These companies offer various services and solutions related to digital
assets and block chain technology.

While these crypto currency companies contribute to the growth and adoption of digital assets and block chain technology in Kenya, they also face challenges related to regulatory uncertainties and operational complexities. The regulatory landscape and industry dynamics may evolve, impacting the crypto currency ecosystem in the country.

Staying informed about regulations and taxation related to crypto currencies in Kenya is not only a legal
requirement but also essential for responsible and informed participation in the digital asset ecosystem. It helps you
protect yourself from legal consequences, fosters transparency, and contributes to the legitimacy of crypto
currencies within the country’s financial system.

It is advisable to consult with tax professionals or legal experts who are knowledgeable about crypto currency taxation in Kenya to ensure compliance and proper reporting. Crypto currency companies have gained significance in Kenya's financial landscape through financial inclusion of individuals without access to traditional banking services, creating investment opportunities and enhancing economic growth by offering job opportunities and driving entrepreneurship.