Kenya is among the three largest Bitcoin markets on the African continent, alongside Nigeria and South Africa. Currently, it is projected that the crypto market in the country will grow to approximately 730,000 users by the end of this year.
According to a UN survey report on the cryptocurrency climate within Africa, Kenya has the largest percentage of cryptocurrency holders on the continent.
With Kenya now standing as one of the leading African nations for cryptocurrency adoption, crypto is now being taken seriously not just by Gen Z and millennials, but also by the government, making it a safe financial haven for many.
And even as blockchain technology holds the promise of secure, transparent, and profitable transactions, the rise of cryptocurrencies has seen a surge in digital fraud incidents, with crypto scams becoming more sophisticated than ever.
In Kenya, for instance, crypto scams have become an epidemic, with hackers mostly targeting influential accounts, forcing the regulation of cryptos.
The need for a standardised legal framework across the continent has seen the Kenyan government, alongside stakeholders, working around the clock to eliminate online fraud, protect users, and enable cross-border blockchain solutions.
Speaking at the third edition of the Kenya Blockchain and Crypto Conference held in Nairobi, experts in the cryptocurrency ecosystem stressed the need for legal frameworks and structures for digital assets and crypto service providers.
Tatenda Chinodakufa, Business Development Manager, Sumsub Africa, warned of rising threats such as deep fake fraud and synthetic identities, urging stronger compliance frameworks.
“We have built this all-in-one robust AI-powered verification solution that ensures businesses operating in Kenya, Africa, and globally are fully secure and are confident that the individuals who are onboarding their platforms are not fraudsters and only have good intentions to grow their businesses,” stated Chinodakufa.
He further pointed out that Kenya’s robust mobile money culture, tech-savvy youth and entrepreneurial spirit are unique advantages that hold the potential to leapfrog the current regional challenges.
