[kictanet] Public Notice by CBK on Virtual Currencies

Tue Dec 15 13:16:09 EAT 2015

@ Ali, The assumption we are working with is that CBK is a bunch of party
poopers way behind on the tech trends. The Bitcoin market is beyond the
CBKs control. MPesa wasnt. Mpesa was a threat to banks not to CBK. They
dealt in Kenya shillings and held the money in a local bank account.

Bitcoin may prevail in the end but I think for CBK control is key. Afterall
if its controlled by a foreign government and they decide to ransom you
what can you do?

On Tue, Dec 15, 2015 at 12:57 PM, Ali Hussein <ali at hussein.me.ke> wrote:

> Mark
>
> That argument would be great in a perfect world…A world where Mpesa would
> have been killed because the banks were threatened and CBK then had no clue
> how to regulate this newfangled way of transferring value.
>
> The issue is two pronged:-
>
> 1. Start-ups and companies in the IT sector need to get a lot more savvy
> with regulation.
> 2. Regulators need to be less reactionary and embrace new ideas while
> safeguarding our interests.
>
> Granted. Its not an easy thing. The answer is not to kill the startup
> because you don’t understand it. Its to help them navigate the regulatory
> pitfalls.
>
> I hope the new team coming on board and a new idea being discussed by
> stakeholders called Enterprise Kenya will look into such issues.
>
> Thanks & Regards
>
> Ali Hussein
> ali at hussein.me.ke
>
> +254 713 601113
> Twitter: @AliHKassim
> Skype: Abu-Jomo
> LinkedIn: http//ke.linkedin.com/in/alihkassim
> Blog: www.alyhussein.com
>
> On Dec 15, 2015, at 12:37 PM, Mark Mwangi <mwangy at gmail.com> wrote:
>
> Arent we being abit presumptuous? The CBK is acting in our interest. If
> BitPesa was to close shop today how would you hold them accountable? Who
> regulates them? Do they have a financial license?
>
> On Tue, Dec 15, 2015 at 11:49 AM, Ali Hussein via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>> Waithaka
>>
>> I concur with you. 150%
>>
>> Regulators the world over need to get on with the Program. Virtual
>> Currencies are here to stay. Instead of fighting them and driving them
>> underground find a way to work with the new dispensation.
>>
>> This is a fight the CBK will NEVER win. That you can take to the Bank.
>> (Pun intended).
>>
>> Thanks & Regards
>>
>> Ali Hussein
>> ali at hussein.me.ke
>>
>> +254 713 601113
>> Twitter: @AliHKassim
>> Skype: Abu-Jomo
>> LinkedIn: http//ke.linkedin.com/in/alihkassim
>> Blog: www.alyhussein.com
>>
>> On Dec 15, 2015, at 11:07 AM, Ngigi Waithaka via kictanet <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>> Very dicey...
>>
>> Let's see... What is MPesa? It's a Virtual Currency that has a 1:1
>> Mapping with the Kenya Shilling. That's why when I send you MPesa, you
>> don't receive a legal tender, but you know you can convert it to KES at a
>> rate of 1:1 minus the small charges.
>>
>> What is Paypal? a Virtual Currency that has a 1:1 mapping with say USD
>>
>> What is BitCoin? A Virtual Currency that has a *fluctuating* mapping with
>> other currencies e.g 1:130 with USD.
>>
>> If I take the risk that BitCoin might fluctuate, a risk we also take when
>> we get paid in USD / Euros etc when in Kenya, why should it be illegal?
>>
>> Its just a Virtual Currency, one of many....
>>
>> Regards
>>
>> On Tue, Dec 15, 2015 at 10:00 AM, Josiah Mugambi via kictanet <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>>> CBK has taken a stand:
>>>
>>>
>>> https://www.centralbank.go.ke/index.php/news/464-public-on-virtual-currencies-such-as-bitcoin
>>>
>>> Extract:
>>>
>>> ++++
>>>
>>> The attention of the Central Bank of Kenya (CBK) has been drawn to media
>>> reports
>>> on the use, holding and trading of virtual currencies such as Bitcoin in
>>> Kenya.
>>> Bitcoin is a form of un-regulated digital currency that is not issued or
>>> guaranteed by
>>> any government or central bank. Domestic and international money transfer
>>> services in Kenya are regulated by the Central Bank of Kenya Act and
>>> other
>>> legislation. In this regard, no entity is currently licensed to offer
>>> money remittance
>>> services and products in Kenya using virtual currency such as Bitcoin.
>>>
>>> This is to inform the public that virtual currencies such as Bitcoin are
>>> not legal
>>> tender in Kenya and therefore no protection exists in the event that the
>>> platform that
>>> exchanges or holds the virtual currency fails or goes out of business.
>>> Some of the
>>> risks associated with buying, holding or trading virtual currencies
>>> include the
>>> following:
>>>  Transactions in virtual currencies such as bitcoin are largely
>>> untraceable and
>>> anonymous making them susceptible to abuse by criminals in money
>>> laundering
>>> and financing of terrorism.
>>>  Virtual currencies are traded in exchange platforms that tend to be
>>> unregulated
>>> all over the world. Consumers may therefore lose their money without
>>> having
>>> any legal redress in the event these exchanges collapse or close
>>> business.
>>>  There is no underlying or backing of assets and the value of virtual
>>> currencies is
>>> speculative in nature. This may result in high volatility in value of
>>> virtual
>>> currencies thus exposing users to potential losses.
>>>
>>> CBK reiterates that Bitcoin and similar products are not legal tender
>>> nor are they
>>> regulated in Kenya. The public should therefore desist from transacting
>>> in Bitcoin
>>> and similar products.
>>> ++++
>>>
>>>
>>> --
>>> Josiah Mugambi
>>>
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>>
>>
>>
>> --
>> *Regards,*
>>
>> *Wait**haka Ngigi*
>> Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod
>> Building
>> T +254 20 525 0750 |Office Mobile: +254 716 201061 | M +254 737 811 000
>> www.at.co.ke
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>> Unsubscribe or change your options at
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>>
>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>> for people and institutions interested and involved in ICT policy and
>> regulation. The network aims to act as a catalyst for reform in the ICT
>> sector in support of the national aim of ICT enabled growth and development.
>>
>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>> online that you follow in real life: respect people's times and bandwidth,
>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>> not spam, do not market your wares or qualifications.
>>
>>
>>
>> _______________________________________________
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>>
>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>> for people and institutions interested and involved in ICT policy and
>> regulation. The network aims to act as a catalyst for reform in the ICT
>> sector in support of the national aim of ICT enabled growth and development.
>>
>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>> online that you follow in real life: respect people's times and bandwidth,
>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>> not spam, do not market your wares or qualifications.
>>
>
>
>
> --
> Regards,
>
> Mark Mwangi
>
> markmwangi.me.ke
>
>
>
>
>
>

-- 
Regards,

Mark Mwangi

markmwangi.me.ke
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