[kictanet] Public Notice by CBK on Virtual Currencies

Tue Dec 15 14:10:21 EAT 2015

Mark

Noted. The key word here is control. And by the way just for your information no Central Bank in the world controls Bitcoin. Hence the problems it attracts. 

My problem with regulators is that they always see a glass half empty as opposed to half full. The savvy regulator today (sometimes the CA gives us a glimpse of how a forward thinking regulator can be a great catalyst for the development of a sector) :-) needs to understand that CONTROL (emphasis mine) is overrated.  Rather being a catalyst and a defender of the citizens rights can actually be combined. 

Reactionary statements like what they released doesn't auger well for the innovation space we are at.

Ali Hussein
Principal
Hussein & Associates
+254 0713 601113 / 0770906375

Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim
Blog: www.alyhussein.com

"Discovery consists in seeing what everyone else has seen and thinking what no one else has thought".  ~ Albert Szent-Györgyi

Sent from my iPad

> On 15 Dec 2015, at 1:16 PM, Mark Mwangi <mwangy at gmail.com> wrote:
> 
> @ 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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>>>>>> 
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>>>>>> 
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>>>>> 
>>>>> 
>>>>> 
>>>>> -- 
>>>>> Regards,
>>>>> 
>>>>> Waithaka 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 https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.com
>>>>> 
>>>>> 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.
>>>> 
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>>> 
>>> 
>>> 
>>> -- 
>>> Regards,
>>> 
>>> Mark Mwangi
>>> 
>>> markmwangi.me.ke
> 
> 
> 
> -- 
> Regards,
> 
> Mark Mwangi
> 
> markmwangi.me.ke
> 
> 
> 
> 
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