ADVOCATE TRAINING PROGRAMME

ATP 105: COMMERCIAL TRANSACTION 2021 PROJECT WORK

BY FIRM 22 CLASS C

COURSE INSTRUCTOR: MR. GEORGE MBAYE

SUBMITTED: AUGUST 2022

NO. FIRM 22 MEMBERS STUDENT’S ID SIGNATURE

1. David Chokaa 20220495

2. Bill Khabongo 20220822

3. Kisese Jones Kyalo 20221960

4. Ann Wangui 20220883

5. Brillian Njoki 20220534

6. Rhema Sifuna 20220269

7. Ayoma Faith 20221114

8. Elizabeth Ombija 20220440

9. Leah Wanjiku 20220281

1
CHAIRPERSON………………………… SECRETARY…………………………
SIGNATURE……………………………. SIGNATURE………………...................
DATE: ……………………………………. DATE: ………………………………….

DECLARATION
We hereby declare that this project is our original work and that it has not been submitted to any
other institution for academic credit. We referred to a range of sources in the course of preparing
this document, and have properly acknowledged all the references made to the work of others.

CHAIRPERSON: ……………...........………………………………………………………..

SIGNATURE: ……………………………………………...…………………………………..

DATE: ………………………………………………………………………………………..

COURSE LECTURER: ........................................................ …………………………………

SIGNATURE: …………………………………………………………………………………

DATE: ……………………………………………………….…………………………………

ACKNOWLEDGEMENT
We would like to thank God for seeing us through this project. We would also like to sincerely
thank each other for our valuable contributions to this research. This project would not be
complete without the efforts and cooperation of every member of the firm. We would also like to
thank our lecturer, Mr. George Mbaye, for his scholarly guidance from the beginning. His
assistance and advice were critical to the success of this project.

ii
LIST OF LEGAL REFERENCES

LIST OF LEGISLATIONS
Constitution of Kenya 2010

National Payment System Act, No 39 of 2011

Banking Act Cap 488

The Capital Market Act

Income Tax Act

Data Protection Act

Central Bank of Kenya Act

Consumer Protection Act

Proceeds of Crime and Anti-Money Laundering Ac

Computer Misuse and Cybercrime Act

LIST OF CASES
Lipisha Consortium Limited & another v Safaricom limited [2015] Eklr

Wiseman Talent Ventures v Capital Markets Authority [2019] eKLR

ABSTRACT
Virtual Currencies are a type of digital currency that can be used as a store of value, a unit of
account, or a means of trade. Cryptocurrency is a type of virtual currency that uses encryption to
ensure that transactions are authentic and that records are kept by a decentralized system rather
than by a single central authority. It is solely dependent on technologies used in block chains.
This project's work is significant in the sense that it will examine cryptocurrencies in Kenya
using the breakdown below:

I. Introduction

iii
 II. Historical development of cryptocurrency

III. Existing legal and regulatory framework of cryptocurrency

IV. Comparative analysis between Kenya and other jurisdictions in relation to cryptocurrency
law

V. Challenges Facing cryptocurrencies in Kenya

VI. Amendments vis-a-vis Sui Generis Laws

VII. Recommendations and conclusions on the way forward in relation to cryptocurrency in

Kenya.

The methodology to achieve the above analysis will be conducted through intense research and
analysis of cryptocurrency books, publications, court cases and commentaries by government
financial institutions like the Central Bank of Kenya. The final findings will show how
unregulated cryptocurrency is in Kenya, to the point where the Central Bank of Kenya issued a
notice warning that virtual currencies are neither legal tender nor subject to Kenyan law, and as a
result, there is no protection in the event that the platform that exchanges or holds them fails.
This exposes Kenya to deep web crimes like racketeering and the smuggling of illicit
commodities as well as money laundering and illegal pyramid schemes.We shall conclude by
showing that the significant effect of cryptocurrency in the global market cannot be ignored any
further. The legal status of virtual currency that is too vague and volatile should be fixed through
amendments of the existing legislations to incorporate virtual currencies, as it cuts across the
financial system.

iv
 Table of Contents
DECLARATION.......................................................................................................................................................................... ii
ACKNOWLEDGEMENT......................................................................................................................................................... ii
LIST OF LEGAL REFERENCES................................................................................................................................... iii
LIST OF LEGISLATIONS.................................................................................................................................................iii
LIST OF CASES.................................................................................................................................................................... iii
ABSTRACT.................................................................................................................................................................................. iii
INTRODUCTION........................................................................................................................................................................ 1
HISTORICAL DEVELOPMENT OF CRYPTOCCURRENCY................................................................................3
LAWS IN KENYA THAT HAVE PROVISIONS RELATING TO CRYPTOCURRENCY..........................4
Constitution of Kenya 2010................................................................................................................................................. 4
National Payment System Act.............................................................................................................................................5
Banking Act............................................................................................................................................................................... 5
Capital Market Act.................................................................................................................................................................. 6
Tax Laws i.e the Income Tax Act.....................................................................................................................................6
Data Protection Act................................................................................................................................................................. 7
Central Bank of Kenya Act.................................................................................................................................................. 8
Consumer Protection Act...................................................................................................................................................... 8
Proceeds of Crime and Anti-Money Laundering Act..................................................................................................9
Computer Misuse and Cybercrime Act............................................................................................................................9
CASE LAW.................................................................................................................................................................................... 9
CASE STUDY OF CRYPTOCURRENCY IN VARIOUS JURISDICTIONS...................................................10
South Africa............................................................................................................................................................................ 11
China......................................................................................................................................................................................... 12
Japan.......................................................................................................................................................................................... 13
CHALLENGES FACING CRYPTOCURRENCIES IN KENYA...........................................................................14
TYPES OF CRYPTOCURRENCIES IN KENYA........................................................................................................15
Bitcoin....................................................................................................................................................................................... 15
Ethereum.................................................................................................................................................................................. 15
Litecoin..................................................................................................................................................................................... 16
AMENDMENTS VIS-À-VIS SUI GENERIS.................................................................................................................17
Amendments........................................................................................................................................................................... 17
Sui Generis.............................................................................................................................................................................. 19

v
CONCLUSION AND RECOMMENDATIONS............................................................................................................21
BIBLIOGRAPHY..................................................................................................................................................................... 23

vi
INTRODUCTION
A good for a good exchange, a service for a service exchange, or an interchange of these was
how goods and services were traded in earlier times. The dawn of money as a means of exchange
has made this form of trading easier. However, new channels of communication and mode of
exchange have emerged as a result of technology advancements. Some of the more notable ones
include the use of credit cards and internet money transactions.

Cryptocurrency is a distinct way for individuals to exchange virtual money with one another
without the involvement of a central bank. Centralized exchanges (CEXes) and decentralized
exchanges are the two main categories of cryptocurrency exchanges (DEXes). The majority of
cryptocurrency investors use centralized exchanges, which may be the more convenient and
secure choice for common users. Instead of a single authority, a decentralized system using
cryptography maintains records and verifies transactions.1

A company-created and -operated cryptocurrency exchange is referred to as centralized. These

exchanges are regarded as centralized since a single organization controls all transactions and
establishes the exchange's policies and charges. For instance, Coinbase, Crypto.com, and FTX
build and manage well-known CEXes to make money. The businesses provide mobile apps and
browser-based platforms, and they can make money when you use their exchanges to purchase
or sell cryptocurrencies.

Benefits of a Centralized Crypto Exchange

● They frequently have an intuitive interface.

● Generally follow local, state, and federal laws.
● If you forget your login details, it can assist you in accessing your account.
● You might have insurance to prevent hacks on your cryptocurrency.
A Centralized Crypto Exchange's Drawbacks

● You must have faith in the business to protect your cryptocurrency.

● Exchange chooses which cryptocurrencies it will list and let you purchase.
● In the event that your login details are stolen, you might not be compensated.
● Exchange may close your account or stop supporting specific cryptocurrencies.
Decentralized exchanges (DEX) are a sort of cryptocurrency exchange that enables direct peer-
to-peer cryptocurrency transactions to occur online safely and without the need for a middleman.

A Decentralized Crypto Exchange's Advantages

1 Louis Denicola, ‘Centralized v Decentralized cryptocurrency exchanges’(2022)

<https://www.experian.com/blogs/ask-experian/centralized-vs-decentralized-crypto-exchanges> accessed 22th
August 2022

1
 ● Total command of your crypto
● No need to establish an account or provide identification
● Access to cryptocurrencies not listed on CEXes is provided.
● Possibly charge less for transactions than a CEX
A Decentralized Crypto Exchange's negative aspects

● Possibly more difficult to use and manage

● You risk losing money if someone hacks the DEX.
● Potentially higher cost for each transaction
● If there is a problem, you might be by yourself.
Cryptocurrency is a type of unregulated, digital money that is issued and typically controlled by
its developers and used and accepted among the members of a specific virtual community, 2 in
contrast to making payments through providers of e-money such as Kenya's M-pesa.

As a financial technology, Bitcoin is the most well-known and valued crypto currency.3 In 2008,
Satoshi Nakamoto, a mysterious figure, created it and released it to the public.4 Today's market
has thousands of different crypto currencies.

The Central Bank of Kenya,5 noted in a public announcement from 2015 that domestic and
international money transfer services in Kenya are governed by the Central Bank of Kenya Act
and other laws. They did, however, point out that there is no protection in the event that the
cryptocurrency platform falters or ceases to exist. As a result, no company is currently permitted
to offer goods and services for money transfers in Kenya using virtual currencies like Bitcoin.
Since cryptocurrencies are unregulated, the governor of the Central Bank of Kenya urged
Kenyans against utilizing them. It's important to note, nevertheless, that cryptocurrency trading is
not prohibited by the Kenyan Central Bank.

According to a research on the feasibility of cryptocurrencies as a legitimate form of payment in

Kenya's financial system, it was found that while cryptocurrencies may not develop into a
legitimate form of payment in Kenya's financial system, they can still achieve or maintain a
stable economy as a free banking system independent of a central bank.6 According to the study,
because they lack the crucial components of formulating monetary and fiscal policy,
cryptocurrencies, which are a type of free virtual banking system without a central bank, are
likely to fall short of central banking's goal of monetary and fiscal stability. In order to establish

2 Ibid
3 Bitcoin and Other Virtual Currencies from A Kenyan Legal Perspective.
<https://www.africalegalnetwork.com/wp-content/uploads/2018/04/Bitcoin-and-other-Virtual-Currencies-from-a-
Kenyan-Legal-Perspective.pdf> acccessed 22nd August 2022
4 Satoshi Nakamoto, “Bitcoin: A Peer-to-Peer Electronic Cash System” (2008) <https://bitcoin.org/bitcoin.pdf>
accessed 28th May 2022
5 Constitution of Kenya,2010 Article 231(2) .
6 Jacqueline Wanjiku Waihenya ’Decoding the dilemma of crypto currency regulation in Kenya’ Nairobi
University Masters dissertation(2020)

2
facts regarding cryptocurrencies, the study used both the desktop literature review and
quantitative and qualitative research methodologies. The investigation led to the conclusion that
because digital currencies do not meet the legal requirements of central banking, which call for
the registration and regulation of organizations providing financial services, they are not subject
to CBK regulation. Based on the foregoing finding, the study suggested that because
cryptocurrencies are run in secret, regulations governing them need to be updated in order to
improve their operating conditions and foster trust and predictability in them.7

HISTORICAL DEVELOPMENT OF CRYPTOCCURRENCY

The earliest known instance of cryptocurrency is a paper published in 2009 by a person using the
alias Satoshi Nakamoto.8 This came after the 2008 global financial crisis. After the issuers of the
legal money "failed," Bitcoin was promoted as a possible replacement. A peer-to-peer electronic
cash system based on cryptographic evidence, Bitcoin used electronic cash. 9 Although there are
some differences, the phrases "digital currency," "virtual currency," and "cryptocurrency" have
become more and more synonymous since the invention of Bitcoin. Virtual currencies are a sort
of digital currency that are often controlled by its founders and used and accepted among
members of a specific virtual community. Digital currency is the general phrase used to describe
all electronic money, including both virtual and cryptocurrency. Additionally, the "crypto" in
cryptocurrency refers to the fact that it uses cryptographic methods and encryption algorithms to
assure network security.10 As the market develops, international institutions are replacing the
word "cryptocurrencies" with "crypto assets."

In the decade that has followed Bitcoin's extraordinary growth, other other cryptocurrencies have
been launched around the world, sparking enormous interest in the blockchain technology that
underpins them. The term "block chain technology" refers to a decentralized peer-to-peer
network that keeps track of transactions and the integrity of the ledger using cryptographic tools,
as well as a protocol-wide consensus mechanism that verifies the information and decides

7 Wambani,Linda.M ‘Feasibility of cryptocurrencies as a valid legal tender in Kenya’s financial market’ University
of Nairobi Research Archive(2022)< http://erepository.uonbi.ac.ke:8080/handle/11295/108753> accessed 22nd
August 2022
8 Albrecht C and others, ‘The Use of Cryptocurrencies in the Money Laundering Process’ (2019) 22 Journal of
Money Laundering Control 210
9 De Filippi P and Loveluck B, ‘The Invisible Politics of Bitcoin: Governance Crisis of a Decentralised
Infrastructure’ (2016) 5 Internet Policy Review
10 Yessi Bello Perez, ‘The Differences Between Cryptocurrencies, Virtual, and Digital Currencies’ (19 February
2019) <https://thenextweb.com/hardfork/2019/02/19/the-differences-between-cryptocurrencies- virtual-and-digital-
currencies/> accessed on 15th August 2022.

3
whether, when, and how to update the ledger. 11 Although financial institutions, industry
professionals, and academics prefer to use the term "blockchain" to describe this peer-to-peer
technology, block chains are also known as Distributed Ledger Technology (DLT).

The widespread usage of mobile-based services, especially in Africa and Asia, is seen to offer a
simple way for a blockchain-based system to expand its offerings. 12 Given that the MPESA
revolution, which started in 2007, presented a natural fit, Kenyans have not had any substantial
conceptual difficulties in uptake. Today, the nation is regarded as one of the continent's early
adopters of Bitcoin and several other virtual currencies. According to the Blockchain Association
of Kenya, the total value of Bitcoin transactions in Kenya is believed to be worth over $1.5
million. The nation has gone on to report impressive penetration rates.13

LAWS IN KENYA THAT HAVE PROVISIONS RELATING TO CRYPTOCURRENCY

Constitution of Kenya 2010

Article 40 of the Constitution provides people’s right to acquire and own property of any
description. Cryptocurrency can be argued to be a property and therefore the Government cannot
restrict its ownership unless it is contrary to public interest.

Consumer rights are outlined in Kenya's Constitution in Article 46. Their rights under this law
include the following: the right to reasonably high-quality goods and services, the right to
information they need to fully benefit from those goods and services, the right to the protection
of their economic interests, and the right to compensation for damages they suffer as a result of
the defects in those goods and services. Further, this provision of the law binds public entities
and private persons. In relation to cryptocurrency, this provision sets as the standard, the right of
consumers to be protected. The cryptocurrency industry is one that has a high likelihood of
11 Josias Dewey, Holland & Knight LLP, ‘Global Legal Insights – Block chain & Cryptocurrency
Regulation’ (2019) First Edn. Global Legal Group Ltd, London pg.6
<https://www.acc.com/sites/default/files/resources/vl/membersonly/Article/1489775_1.pdf >accessed
on 15th August 2022.

12 International Finance Corporation Block chain Report, Opportunities for Private Enterprises in Emerging
Markets,Second and Expanded Edition (January 2019)
<https://www.ifc.org/wps/wcm/connect/8a338a98-75cd-4771-b94c-5b6db01e2797/201901-IFC-
EMCompass- Blockchain-Report.pdf? MOD=AJPERES> Accessed 15th August 2022.

13 Mary-Ann Russon, Crypto-currencies gaining popularity in Kenya (22 February 2019)

<https://www.bbc.com/news/business-47307575> accessed on 15th August 2022.

4
causing loss due to poor services, negligence and unlawful contracts that are not in the best
interest of the investor. The investor who is also the consumer of the goods and services offered
by these companies can find protection under this provision of the law.

The Central Bank of Kenya is designated in Article 231 of the Constitution as the body in charge
of developing monetary policy, fostering price stability, and issuing currency. Therefore, the
Central Bank of Kenya will decide on any matters involving the national currency.

National Payment System Act

The purpose of this Act is to govern the oversight of payment systems and payment service
providers. A payment system encompasses all instruments and processes that are related to the
system and enables payments to be made between a payer and beneficiary or facilitates the
circulation of money.14 The act also provides for instances when a payment system can be
designed, that is; when the payment system poses a systemic risk, to protect the interest of the
public and to protect the integrity of the payment system. 15 Further, the Act gives the procedure
for designation, how to effect a settlement, payments to third parties, procedure for authorization
and renewal to be a payment service provider and procedure for revocation of a payment service
provider and the procedure for settlement of disputes. Besides that, it institutes the powers and
functions of the Central Bank of Kenya in relation to the National Payment Systems.

This Act relates to cryptocurrency in the sense that cryptocurrency has a branch to it that deals
with settlement of payments. For example, earlier Tesla had agreed to receive payments for cars
in the form of cryptocurrency. Though Tesla suspended this form of payment for its vehicles, we,
however, see cryptocurrency taking the form of a payment system. This area of cryptocurrency
can then fall under the National Payment Systems Act.

Banking Act
The Banking Act was made in order to modify and codify the laws governing Kenyan banking
operations and for related objectives. A corporation that conducts or plans to conduct banking
operations in Kenya is referred to as a bank, with the exception of the Central Bank. 16 The term
"banking business" refers to the accepting of deposits from the general public that are repayable

14 National Payment Systems Act, s2

15 National Payment Systems Act, s3
16 Banking Act, s2

5
immediately upon demand, after a specified amount of notice, or on current accounts, as well as
the payment of checks and the acceptance of them. It also refers to the employing of money held
on deposits or current accounts, or any portion of it, for the account and at the risk of the person
doing so.17 It also outlines the process for granting institution licenses, the policy for businesses
that are prohibited, the policy for reserves and dividends, accounting and auditing, the
information and reporting requirements, the inspection and control of institutions, as well as the
guidelines that representative offices of foreign institutions should adhere to.

Cryptocurrency companies offer services similar to banks as they allow people to purchase and
hold cryptocurrency in their accounts within the company accounts. Besides that it offers
borrowing facilities and some companies choose to invest some of the deposits to earn returns.

Capital Market Act

An effective, fair, and orderly capital market was intended to be developed in Kenya through the
establishment of a Capital Markets Authority, which was the goal of this act.The Act contains
the procedure for recognizing self-regulatory organizations, the policy relating to exchanges, the
licenses required for the securities industry, the procedure for public offers of securities, asset
backed securities, securities transactions and registers and insider trading.

The cryptocurrency industry has been thought of by some as an industry that is morphing into a
security industry. Besides that, the cryptocurrency industry has a branch of it that allows for
trading such as in the securities industry. This branch can therefore be regulated by the Capital
Markets Act.

Tax Laws i.e the Income Tax Act

The Income Tax Act (amended as 2019) makes provision for cryptocurrency regulations,
where under section 12E it states (1) “a tax to be known as digital service tax shall be payable by
a non-resident person whose income from the provision of services is derived from or accrues in
Kenya through a business carried out over the internet or an electronic network including
through a digital marketplace.”This means profits and gains made from trading in transactions
such as crypto currencies must be reported as income for a particular year the income was
gained.18 Cryptocurrency traders are mandated by law to pay taxes or face civil liability. Under
17 Ibid
18 TaxKenya, ‘Cryptocurrencies and Taxation in Kenya’ (www.taxkenya.com14 November 2017)
<https://www.taxkenya.com/cryptocurrencies-taxation-kenya> accessed 29 August 2022

6
Kenyan law, digital marketplaces are defined as electronic platforms that facilitate “the direct
interaction between buyers and sellers of goods and services through electronic means.”
The KRA declared that cryptocurrency platforms are included in the broad statutory definition of
“digital marketplaces.”Specifically, cryptocurrency platforms are digital marketplaces because
they provide an internet platform for buyers and sellers to trade cryptocurrency from anywhere in
the world.

The new policy places Kenya among the group of countries officially levying taxes on crypto
transactions. However, cryptocurrencies have yet to obtain any legal status in the country. In the
words of the CMA, they lack “regulatory sanction.”The Digital Service Tax brought a new hope
that the Central Bank of Kenya would soon clarify industry regulations in order to harmonize its
position with that of the KRA vis-à-vis crypto business. Normal Tax rules are also assumed to
apply , where a company acquires crypto currency for the purpose of speculation it will be
subject to the Capital Gains Tax Act if it uses the the currency as a means of sale or carrying out
transactions .The Capital Gains Tax makes provision by virtue of Section 34 (1)(j) which sets
the rate of Capital Gains tax at 5%. Given the nature of cryptocurrencies chances of considering
it Company property create a gap in ascertaining such transactions.

Data Protection Act

To give Article 3(c) and (d) of the Constitution life, the Data Protection Act was created. It
further creates the position of the Data Protection Commissioner and outlines the obligations of
data controllers and processors as well as rules for the handling of personal data. Data is
information that is recorded with the aim that it should be processed by such equipment,
information that is recorded as part of a pertinent file system, or information that is processed by
equipment that operates automatically in response to instructions for that purpose. A natural or
legal person, public authority, agency, or other entity that chooses, individually or in
collaboration with others, the objectives and means of data processing is referred to as a data
controller. A data processor is also a natural or legal person, governmental entity, business, or
other entity that handles personal data on behalf of a data controller.

7
The data of people is collected when they are signing up to these companies. Further, due to
fears of money laundering and other illegal activities, there has been a push for crypto companies
to be transparent and put in effort to know their clients. As a result, crypto companies collect a
lot of data from its users so as to fulfill the obligations of the law. This data will need to be
protected and therefore the obligations of this Act can be said to extend to crypto firms.

Central Bank of Kenya Act

The Central Bank of Kenya and its operations, as well as the Kenyan currency, were established
by this Act. The Central Bank's major goal is to develop and carry out monetary policy that is
intended to attain and maintain stability in the overall level of prices.

During the early adoption of cryptocurrency, the crypto crusaders advocated it as the replacer of
fiat. This Act is therefore relevant to crypto in that the objectives of these crypto firms relate to a
country’s currency and stability of the economy. The Central Bank of Kenya can exercise
authority over these firms in that they offer services that touch on banking, national currency and
the overall economy of a nation.

Consumer Protection Act

The Consumer Protection Act was created to safeguard consumer rights and stop unfair business
practices in consumer dealings. This action gives Article 46 of the Constitution legal force. A
consumer is anyone to whom specific goods or services are advertised in the normal course of
the supplier's business, anyone who has transacted with a supplier in the normal course of the
supplier's business, anyone who uses specific goods or receives specific services, and a
franchisee. The legislation outlines procedures for consumer remedies as well as consumer
rights, unfair practices, rights and obligations for particular consumer agreements, credit
agreements, and other agreements.

Those who transact, trade and invest in cryptocurrency can be said to be consumers in the sense
that they receive particular services from crypto companies, further, they enter into different
transactions with crypto companies. The service they receive is the service to buy, borrow, swap
and earn crypto. Investors need to be protected from any predatory practices from these crypto
firms.

8
Proceeds of Crime and Anti-Money Laundering Act
This Act defines money laundering as a crime and establishes methods to prevent it as well as for
the identification, tracing, freezing, seizure, and confiscation of the proceeds of crime. The act of
concealing or disguising the nature, source, location, disposition, or movement of property or its
ownership is known as money laundering. It occurs when a person, who knows that a certain
item is a proceeds of crime, engages into a contract, agreement, or transaction with that item.
Additionally, it establishes the Financial Reporting Center, whose main goals are to aid in the
detection of criminal proceeds as well as the fight against money laundering and terrorism
financing. It also outlines a reporting institution's duty regarding anti-money laundering.

The crypto industry has been under the watchful eye of governments as it is perceived to be the
main payment system that highly encourages money laundering. This is because of its feature of
anonymity and its ability to transact large sums of ‘money.’ Therefore, to curb this crime, the
crypto companies will need to follow these regulations.

Computer Misuse and Cybercrime Act

The purpose of this Act is to define computer-related offenses, enabling prompt and efficient
detection, prohibition, prevention, reaction, investigation, and prosecution of computer and
cybercrimes, as well as to promote international cooperation in these areas. Blockchain
technology is described in the Act as a digital, decentralized, and public ledger of all
cryptocurrency transactions. The National Computer and Cybercrimes Coordination Committee
is created under Section 4 of the Act, and one of its duties is to advise the government on the
security implications of blockchain technology.

CASE LAW
In Lipisha Consortium Limited & another v Safaricom Limited, where Safaricom suspended
Lipisha Consortium and Bitpesa's M-PESA services because Bitpesa was conducting a money-
transfer business using Bitcoin without the CBK's permission. M-PESA is a mobile banking
service that allows users to save and spend money using their phones. Safaricom, Kenya's largest
cell phone operator, launched M-PESA in 2007 to provide Kenyans with an alternate method of
accessing banking services. Safaricom's policy is to stop banking services for cryptocurrency
companies who do not have proper CBK authorization. According to the court, Safaricom's
policy was legitimate. In other words, the court determined that Safaricom had the right to stop

9
providing M-PESA services to a firm if it was engaged in money transfer operations without a
permit from the appropriate authorities. The court argued that it could not compel Safaricom to
conduct business with Lipisha and Bitpesa because doing so would expose the company to legal
liability for anti-money laundering offenses if virtual currency transactions were permitted on its
M-PESA network.

In the case of Wiseman Talent Ventures v Capital Markets Authority [2019] eKLR The
applicant claimed that because there is no legislation giving the Capital Markets Authority
(CMA) any control over bitcoin enterprises, the CMA lacks all authority over cryptocurrencies.
The CMA maintained that Sections 2(j), (g), and (m) and Sections 11(1)(d) and (f) of the Capital
Markets Authority Act may be used to grant it authority over crypto businesses.The court stated
that the law's application was not nullified by the lack of a particular regime. The court further
said that because cryptocurrency is a scheme that entails investing money in a shared venture
with returns derived only from the labor of others, it might be considered a security. In addition,
the court determined that the plaintiffs had violated Articles 3 and 10 of the Constitution by
failing to be honest and accountable to the public.

CASE STUDY OF CRYPTOCURRENCY IN VARIOUS JURISDICTIONS

Most jurisdictions are yet to enact laws governing cryptocurrencies which in essence means that
the legality of cryptocurrency in most countries is still unclear. While most countries around the
world are embracing cryptocurrencies, most African countries including Kenya have warned
their banks to avoid cryptocurrency transactions. In 2018, Kenya warned its banks against
processing crypto transactions as it is considered to be unsafe. Though not wholly welcoming of
the cryptocurrency idea, effort has been made to ensure that there is an oversight over activities
involving cryptocurrencies.

This is discussed as follows; The National Payment Systems Act (NPSA), the Capital Markets
Act (CMA), and the Kenya Information and Communication Act are Kenya's primary laws
governing cryptocurrencies (KICA). While CMA is overseen by the Capital Markets Authority,
NPSA is managed by the Central Bank of Kenya. The Communications Authority manages
KICA.The NPSA has granted the CBK permission to monitor and supervise payment systems
related to service providers, and the CBK is obligated to do so in order to guarantee investor

10
safety on the platforms. The CBK has cautioned the public about the risk of cryptocurrencies and
has highlighted the fact that they are unstable and not particularly regulated. The Kenya Money
Remittance Regulations, which mandate that cryptocurrency organizations obtain licenses from
Kenyan authorities in order to operate in Kenya, also aid the CBK in the regulation of
cryptocurrencies.

A license is necessary whenever a business provides a service for the transmission of money or
any type of representation of money without the development of payment accounts. This
essentially means that in order to legally operate within Kenya, all crypto service providers must
possess a license.According to the Capital Markets Authority, a coalition of financial authorities
working together to oversee cryptocurrencies would be sufficient, or alternatively, an agency
should be established to serve as the principal cryptocurrency regulator. CMA claims that these
methods would be successful in improving the uniformity and consistency of cryptocurrency
rules. Most notably, the Capital Markets Authority's major goal is to maximize the potential of
cryptocurrencies while ensuring financial stability, reducing the risk of money laundering, and
preventing the financing of terrorism.

South Africa
The financial industry in South Africa is the most advanced on the continent. On the subject of
cryptocurrency regulation, they are, however, unsure. In order to make sure that this technology
becomes widely used, regulation in the bitcoin business is essential. Regulation is crucial for
cryptocurrency platforms because it lays the groundwork for establishing vital connections, such
those with banks. Despite absence of regulation, cryptocurrency is recognized as an investment
and taxable asset in South Africa. In December 2014, the South African Reserve Bank released
the first position paper on virtual currencies..19 The following are some of the proposed
regulations;The country looks to be motivated to regulate virtual assets as a result of the sharp
increase in cryptocurrency trade in South Africa and the surge in fraud cases where ransom is
demanded in cryptocurrency. The major goals of the legislation are to promote openness and
reduce the use of cryptocurrencies for wrongdoing. Second, by addressing customer verification
and identification, record keeping of client transactions, customer due diligence, and monitoring

19 South Africa Reserve Bank, Position Paper on Virtual Currencies, 3rd December 2014 SAR.
<https://www.resbank.co.za/RegulationAndSupervision/NationalPaymentSystem(NPS)/Legal/Documents/Position
%20Ppaper/Virtual%20Currencies%20Position%20Paper%20%20Final_02of2014pdf> accessed on 17/7/2022

11
of odd and suspicious behaviour, financing of terrorism and money laundering are discouraged.
The South African Reserve Bank also keeps an eye on cryptocurrency service providers and
assets for international money transfers.

However, as a safety precaution, South Africa intends to limit the exposure of banks and other
financial institutions to cryptocurrency resources in case the risk increases.These risks include;
price instability, consumer risk, money laundering and circumvention of exchange control
regulations.20From the foregoing, we can deduce that Kenya is still rigid with its proposed
regulations concerning cryptocurrency while South Africa has been easy in promoting digital
asset transactions. South Africa continues to develop and refine its cryptocurrency regulations
with the prediction that the country is embracing cryptocurrency and that their use will increase.
On the other hand, Kenya is still skeptical about approving this new technology with the fear of
its safety having had reported cases of crypto scams.

Like South Africa, Kenya could implement the proposed cryptocurrency regulations so as to
allow the lawful activities of crypto trading. In addition, in case of any hitches like scams and
fraud, the regulators can find a middle ground that ensures punitive measures are put in place to
deter the scammers. This will allow the locals to reap benefits of digital asset transactions while
risk mitigation and compliance are prioritized.

China
In contrast to South Africa and Kenya, countries like China have outlawed the usage of
cryptocurrencies in general and bitcoin in particular. This was accomplished through a number of
government regulatory bodies, including the State Administration for Industry and Commerce
(SAIC), the Ministry of Industry Information and Technology (MIIT), and the Cyberspace
Administration of China (CAC) (SAIC). However, the Chinese government has declared that it
plans to launch a state-backed cryptocurrency in the future.21

Japan
Japan on the other hand is considered as one of the most evolved jurisdictions on matters of
cryptocurrency. The Payment Service Act of Japan recognizes virtual currencies as legal

20 Financial Action Task Force Report

21 Library of Congress Report Ibid supra Note 386 at pg 106

12
property.22 According to this Act, virtual money is defined as property value that can be acquired
from or sold to unspecified people via an electronic data processing system and used as payment
for the rental of products or the rendering of services by unspecified people.

A self-regulatory body with the power to impose rules and criteria for cryptocurrency exchanges
in Japan is the Japanese Virtual Currency Exchange Association..23 Being the world’s largest
market for bitcoin, the country has imposed taxes on gains from cryptocurrencies which are
referred to as miscellaneous income. This is done through the National Tax Agency. Some of the
legislations governing cryptocurrency in Japan are the Financial Instrument and Exchange Act
(FIEA) and the Payment Services Act (PSA). The main aim of these regulations is to safeguard
interests of cryptocurrency investors whose assets are in the hands of cryptocurrency exchanges
and custodians. These two Acts also ensure that transactions are proper and secure by outlining
provisions for that.

Additionally, through the Electronically Recorded Transferable Rights, Japan has enabled
regulation of digital assets. The PSA requires accountability from service providers when it
comes to risks involved during the exchange of crypto hence registration of custodians. The Act
proposes the use of reliable methods such as offline storage in secure cold wallets, not unless it
hinders the execution of smooth operations. The use of internet connected wallets a.k.a ‘hot
wallets’ is discouraged since one could easily fall victim to scammers. Use of cold wallets is
encouraged since users can be refunded if funds get stolen from the platform.24 Generally, crypto
custodians are required to register with FSA for a license as a cryptocurrency-asset exchange
service provider.

From the foregoing, it is apparent that countries that are welcome to the idea of legalizing
cryptocurrency like Japan have enacted necessary regulations to govern crypto activities.
Regulation of cryptocurrency in Japan is considered as the most preferred reference globally. On
the other hand, those that are opposed to the idea like China have outrightly banned them as well
as withdrawn their national support e.g funding through banks. We also have countries like

22 Kevin Helms, Japan to provide G20 with Solution for Cryptocurrency Regulation https://news.bitcoin/japan-g20-
cryptocurrency-regulation accessed on 22/7/2022
23 Jon Southurst, 16 Japanese Exchanges Form Group to Self-RegulateDigital Asset Industry
https://bitsonline.com/japanese-exchanges-form-digital-asset-group/ accessed on 22/7/2022
24 Sygna Bridge No. 428

13
Kenya which have neither legalized nor banned the use of cryptocurrency. This means that there
are no clear rules or legal protection on matters of cryptocurrency.

CHALLENGES FACING CRYPTOCURRENCIES IN KENYA

Due to what they perceive as issues faced by cryptocurrencies, including money laundering, use
as a conduit for illegal activity, price volatility, fraud, and cybercrime, several nations have been
reluctant to recognize cryptocurrencies as legal cash or a means of payment. Technology
scholars' optimism about the volatility and scalability of cryptocurrencies to replace fiat
currencies has dimmed because of the recent price volatility of Bitcoin, raising the question of
whether they are merely a passing fad or a real technology that has the potential to replace or
even improve the financial system. The question of whether cryptocurrencies can fulfill the role
of money in the economy and establish the stability, confidence, and methods of payment that
are essential to the success of money today is at the center of the discussion over whether they
can replace Fiat currencies or be recognized as currencies.In Africa, the use of cryptocurrencies
has been welcomed especially in economies with extremely high inflation rates such as South
Sudan and Zimbabwe.25 Bitcoin is the leading cryptocurrency in Africa with Kenya, Nigeria and
South Africa leading in the number of Bitcoin transactions.26

Although Kenyans embraced cryptocurrencies swiftly and enthusiastically, the government

hasn't put in place a sufficient regulatory framework to protect their interests. This has generated
a sizable risk that needs to be addressed since it could have a significant, detrimental impact on
the Kenyan economy. Blockchain technology, which underpins cryptocurrencies, is a relatively
recent phenomena that has undergone significant development to become what is today seen as a
disruptive technology. They have grown to the point that it is impossible to ignore them.

There are several issues that the law needs to address that are currently unchecked and as a result
are causing disruption in the markets. For instance, the issue of anonymity, where those
transacting in crypto-markets do so anonymously and therefore it is difficult to tell who exactly

25 Cindy Lu, ‘Cryptocurrency and Digital Assets: A Positive Tool for Economic Growth in Developing Countries’
[2022] SSRN Electronic Journal.
26 Seyram Pearl Kumah and Jones Odei-Mensah, ‘Are Cryptocurrencies and African Stock Markets Integrated?’
(2021) 81 The Quarterly Review of Economics and Finance 330.

14
is transacting.27 Another issue concerns consumer protection,28 where there needs to be regulation
of the companies that are establishing these blockchain in order to ensure that they do not over-
hype their products only for people to scramble to buy the blockchain and later finding that they
did not have enough mechanisms to protect the consumer. Therefore, the government needs to
step in to bring a solution to these issues that not only create massive loss but also deter
prospective investors. Furthermore, financial markets develop when institutions promote a stable
environment where risks can be calculated. 29

TYPES OF CRYPTOCURRENCIES IN KENYA

According to TripleA, a Singapore-based cryptocurrency payment gateway, over 4.5 million
Kenyans own cryptocurrency. This figure represents 8.5% of Kenya's population. Some of the
commonly owned cryptocurrencies in Kenya include:

Bitcoin
A mysterious individual or group operating under the name Satoshi Nakamoto first suggested the
cryptocurrency and payment system known as Bitcoin in 2008. 30 Because Bitcoin is
decentralized, it is not under the jurisdiction of any governmental body or financial organization.
A public ledger known as a blockchain stores transactions that have been verified by a network
of computers.

Ethereum
Blockchain technology is used by the Ethereum computer network to protect transactions.
Ethereum and Bitcoin are comparable, yet there are some significant distinctions. One benefit of
using Ethereum is to create decentralized applications. As a result, apps can be created and
executed on the Ethereum network using a decentralized architecture. This increases the security
and censorship resistance of Ethereum apps.31

27Jacinta Bernadette and Upalat Korwatanasakul, ‘Cryptocurrency Regulations; Institutions and Financial
Openness’ [2019] 978 ADBI Working Paper Series
<https://www.adb.org/sites/default/files/publication/513726/adbi-wp978.pdf> accessed 28 June 2022
28 Ibid
29 Supra (n5)
30Hongki Kim, ‘Bitcoin Regulation :Legal and Regulatory Issues of the Virtual Currency System’ (2014) 15 The
Korean Journal of Securities Law 377.

31Urvashi M Chaudhari and Brijesh Y Panchal, ‘Survey on Blockchain -Future of Security for Cryptocurrency-
Bitcoin and Ethereum’ (2020) 9 International Journal of Computer Applications Technology and Research 254.

15
Litecoin
A fork of the Bitcoin protocol led to the creation of the cryptocurrency Litecoin in 2011. It is
regarded as one of the earliest cryptocurrencies, or Bitcoin substitutes. A peer-to-peer digital
currency called Litecoin offers quick, almost free transfers to anyone. 32 It is comparable to
Bitcoin but uses a different hashing algorithm and a faster block time. Litecoin can confirm
transactions significantly quicker than Bitcoin as a result. Additionally, Litecoin will be in
circulation in greater quantities than Bitcoin because it has a higher maximum supply than the
latter.

32 Carol R Goforth, ‘The Lawyer’s Cryptionary: A Resource for Talking to Clients about Crypto-Transactions’
[2018] SSRN Electronic Journal.

16
AMENDMENTS VIS-À-VIS SUI GENERIS

Amendments
It’s not long since the world woke up to shocking news of the crash of Terra- Luna
Cryptocurrencies wiping over 50 billion dollars from the market. 33 Yet, the most surprising part
is that in the same week the founders of the crashed crypto-chain announced the plan to create
another company and millions of people voted in support of the new blockchain. As we speak,
Terra-Luna 2.0 is live.34 People lost their savings and some went to the extent of committing
suicide because they had just plummeted to an unimaginable point of debt 35 but the desire to
engage in the crypto-markets has proven to be greater than imagined.

33 Zeke faux and Muyao Shen, ‘A $60 Billion Crypto Collapse Reveals a New Kind of Bank Run’ Bloomberg (19
May 2022) <https://www.bloomberg.com/news/articles/2022-05-19/luna-terra-collapse-reveal-crypto-price-
volatility> accessed 28 June 2022
34 Jamie Redman, ‘Terra Launches New Chain Airdropping Luna 2.0 Coins- Token Value Slides Over 70% From
Price High’ (28 May 2022) <https://news.bitcoin.com/terra-launches-new-chain-airdropping-luna-2-0-coins-token-
value-slides-over-70-from-price-high/ > accessed 28 June 2022
35 Liam Gibson, ‘After Terra, Luna Crashes, Regulators Count Cost of Crypto’ Aljazeera (20 May 2022)
<https://www.aljazeera.com/economy/2022/5/20/after-terra-crash-investors-and-regulators-count-cost-of-crypto>
accessed 28 June 2022

17
What the law is and how it is created has been largely discussed by philosophers among which is
Von Savigny. His theory discussed how law is a result of the silent growth of custom or the
outcome of unformulated public opinion. 36 In other words, he argues that the law is a product of
the happenings of the society and that the evolution of the society forces a change in law.
Cryptocurrency is a phenomenon that has rocked the financial markets for some time and it is
important that the law catches up. By virtue that this is an area that is ever evolving and that
involves trillions of dollars, it is not enough for the government to ignore the issues arising but
rather to step in to protect its people.

According to the state theory of money, the legal nature of money is fundamentally influenced
by the law, States, and Banks.37 Even though society may accept something as money, the use,
trust, and application of anything outside of government projection are limited because the
government does not provide legal protection. Scalability and acceptability of anything not
recognized as money become a quandary that virtual currency, despite its well-intentioned
developers, is currently grappling with on a worldwide scale. The role of Central banks and
regulatory acceptance of cryptocurrencies are thus out of the question. The strategy used by
central banks to give precautionary guidance like the Kenyan instance, has not had a favorable
effect on the invention of cryptocurrencies.

It should be emphasized that the concept of cryptocurrency has changed from one of currency to
one of assets on a global scale. 38 Crypto-assets are a brand-new class of assets that are recorded
in digital form, facilitated by the use of encryption, and do not serve the purpose of money,
according to the European Central Bank. 39 This further demonstrates that nations around the
world are still unwilling to recognize cryptocurrencies as legal tender but are willing to give
them some recognition for the function they perform in the financial system as a digital value, a

36 Indralina Sen, ‘Relevance of Volksgiest: A Theory Propounded by Savigny’ [2019] Vol 4 Asian Law and Public
Policy Review <https://thelawbrigade.com/wp-content/uploads/2019/07/Indralina-Sen.pdf> accessed 28 June 2022
37 L Randall Wray, ‘From the State Theory of Money to Modern Money Theory: An Alternative to Economic
Orthodoxy’ [2014] SSRN Electronic Journal.

38 Fernando Alvarez, David Argente and Diana Van Patten, ‘Are Cryptocurrencies Currencies? Bitcoin as Legal
Tender in El Salvador’ [2022] SSRN Electronic Journal.

39 Burak Uyduran, ‘The Crypto Effect on Cross Border Transfers and Future Trends of Cryptocurrencies’ (2020)
16 Financial Internet Quarterly 12.

18
security, a unit of account, or a means of payment. Another significant global trend is the shift
toward cryptocurrencies supported by central banks, like in China's instance.40

Kenya, as was already indicated, has taken a cautious stance and has not taken any steps to
implement any special rules to deal with cryptocurrencies. 41 According to this study, although
governments have not recognized cryptocurrencies as legal money, they have acknowledged the
various models or roles that cryptocurrencies serve in the financial system, such as assets,
securities, or a means of transferring value for payment. In fact, the task group established by the
Kenyan ministry of ICT reported on the gap that exists at the moment in Kenya. The
aforementioned paper placed a strong emphasis on how the government may promote flexibility
by using technology and by establishing supportive policies.

Following our assessment, it is clear that Kenya can expand its current legal framework to
include cryptocurrencies, as can be inferred from other nations that have passed legislation
regulating them. The failure to recognize cryptocurrencies as currency need not spell the end of
regulatory oversight. The interaction of cryptocurrencies with other areas of the financial
regulatory framework is possible. The National Payments Act can be used by CBK to license
blockchain- or cryptocurrency-backed payment systems like Bitpesa, as was indicted by Patrick
Njoroge, chairman of the Kenyan blockchain association.

Sui Generis
According to Black`s law dictionary Sui Generis means one of its own kind or class. It is a Latin
phrase describing a law that is of its own kind or class. 42There is still no specific crypto currency
law in Kenya. The Data Protection Act, 2019 is the law that continues to be applied. The
challenge however is that the Act does not provide crypto currency procedures. This has made it
hard for investors dealing with the business of crypto currency to be unable to move and grow.43

Cryptocurrency is still a developing field, not only in Kenya but around the world. Stakeholders,
including Kenya's central bank, should amend or create new laws. These new laws should be

40 Martin Chorzempa, ‘China, the United States, and Central Bank Digital Currencies: How Important Is It to Be
First?’ [2021] China Economic Journal 1.

41 Ibid.
42 Black`s law dictionary,8th edition (2004)
43 Data protection Act,2019

19
well-drafted in order to deal with crypto currencies, drawing on the laws of other jurisdictions
that are already ahead in cryptocurrency matters. Kenya's government should provide current
regulations and a favorable legal environment for crypto currency. This will ensure a balance
between embracing and enhancing new technological advancements while also protecting the
interests of consumers.44

It’s worth noting that cryptocurrency should not just have unique and specific regulations
governing it. The world of cryptocurrency cuts across a number of already existing sectors. They
include the banking sector, the ICT sector, the energy sector, the finance sector and many more. 45
Therefore, creating a law that solely focuses on cryptocurrency may end up being repetitive and
strenuous as there are already laws governing the functions that cryptocurrency offers.
Furthermore, it has been viewed that cryptocurrency is slowly molding into a speculative
instrument rather than an alternative currency.46 Therefore, it can be adopted into the financial
industry and serve as a security rather than an individual currency. Besides that, there have been
fears that over regulation of the sector will hinder its growth and development and create a
stagnated industry.47 However, there are issues that only affect cryptocurrency and those can be
regulated separately from other general rules. For example, what will constitute a stable coin and
the rules that each type of blockchain needs to follow. Therefore, there needs to be a blend of
adoption of general laws and laws specific to cryptocurrency. This means that the areas that have
not already been handled by the existing can be regulated by establishing rules specific to
cryptocurrency.

CONCLUSION AND RECOMMENDATIONS

It is a misconception that trust can be established without the involvement of the government. To
maintain the integrity of the financial system, government action is essential. Thus, Kenya can
profit from the case studies and consider amending the law to incorporate cryptocurrency.
Anything that constitutes money or legal tender must be approved by the CBK, as can be
inferred from Kenya's examination of its constitution.48 It is therefore doubtful that Kenya will

44 Blockchain & Crypto currency Laws and Regulations 2022(Global Legal Insights)
45 ‘Cryptocurrency Sectors’ (CoinLore) <https://www.coinlore.com/crypto-sectors> accessed 21 August 2022
46 Supra (n5)
47 Ibid
48 Ibid.

20
implement the classic idea of cryptocurrency as a technology that is decentralized from a central
government authority. As the situation in South Africa and China has shown, inclination is the
same in other jurisdictions. What has been noticed is that nations have pushed to develop hybrid
models that incorporate cryptocurrency characteristics into regulatory frameworks while also
developing frameworks for user cases, regulatory oversight, and risk reduction.

As was already established, states created money, and it is crucial that they use domestic
methods to recognize it.49 However, just as with organizations like the bank of international
settlement, there have been certain challenges in setting norms on a worldwide scale. Through
the Financial Action Task Force, the United States of America has indicated that it intends to
create international standards for services based on cryptocurrencies to fight money laundering. 50
Global standards are crucial for establishing best practices in the financial sector, and one of the
suggestions from the Financial Action Task Force as a best practice in virtual asset service
providers to get licenses with effective mechanisms for monitoring and compliance. The
establishment of such standards will be a good action since it will encourage the incorporation of
best practice international standards into national legislation and assist nations in determining the
best practices for virtual currencies regulations.

It is crucial to highlight that, while Kenya has now adopted a precautionary approach to the
usage of cryptocurrencies, numerous other countries have moved towards a more appropriate and
risk-based approach. Kenya still lacks legislation that covers cryptocurrencies, which means
there is no structure in place to reduce risks. It's vital to understand that the legal acceptance of
cryptocurrencies in the financial industry is not hampered by their lack of recognized currency.
Cryptocurrencies can still be recognized as assets, payment systems, and a method of trade or
store of value. In addition, Kenya may use current laws to regulate cryptocurrencies and address
concerns associated with cryptocurrency transactions such fraud, cybercrime, and money
laundering.

49 Ibid.
50 Malcolm Campbell-Verduyn, ‘Bitcoin, Crypto-Coins, and Global Anti-Money Laundering Governance’ (2018)
69 Crime, Law and Social Change 283 <> accessed 28 June 2019.

21
BIBLIOGRAPHY
Alvarez F, Argente D and Van Patten D, ‘Are Cryptocurrencies Currencies? Bitcoin as Legal
Tender in El Salvador’ [2022] SSRN Electronic Journal

Albrecht C and others, ‘The Use of Cryptocurrencies in the Money Laundering Process’ (2019)
22 Journal of Money Laundering Control 210

22
Bitcoin and Other Virtual Currencies from A Kenyan Legal Perspective.
<https://www.africalegalnetwork.com/wp-content/uploads/2018/04/Bitcoin-and-other-Virtual-
Currencies-from-a-Kenyan-Legal-Perspective.pdf> acccessed 22nd August 2022

Campbell-Verduyn M, ‘Bitcoin, Crypto-Coins, and Global Anti-Money Laundering Governance’

(2018) 69 Crime, Law and Social Change 283
<https://link.springer.com/article/10.1007%2Fs10611-017-9756-5> accessed 28 June 2019

Chaudhari UM and Panchal BY, ‘Survey on Blockchain -Future of Security for Cryptocurrency-
Bitcoin and Ethereum’ (2020) 9 International Journal of Computer Applications Technology and
Research 254

Chorzempa M, ‘China, the United States, and Central Bank Digital Currencies: How Important
Is It to Be First?’ [2021] China Economic Journal 1

‘Cryptocurrency Sectors’ (CoinLore) <https://www.coinlore.com/crypto-sectors> accessed 21

August 2022

De Filippi P and Loveluck B, ‘The Invisible Politics of Bitcoin: Governance Crisis of a

Decentralised Infrastructure’ (2016) 5 Internet Policy Review

Goforth CR, ‘The Lawyer’s Cryptionary: A Resource for Talking to Clients about Crypto-
Transactions’ [2018] SSRN Electronic Journal

Hongki Kim, ‘Bitcoin Regulation: Legal and Regulatory Issues of the Virtual Currency System’
(2014) 15 The Korean Journal of Securities Law 377

Indralina Sen, ‘Relevance of Volksgiest: A Theory Propounded by Savigny’ [2019] Vol 4 Asian
Law and Public Policy Review
<https://thelawbrigade.com/wp-content/uploads/2019/07/Indralina-Sen.pdf> accessed 28 June
2022

International Finance Corporation Block chain Report, Opportunities for Private Enterprises in
Emerging Markets, Secondand Expanded EditionJanuary (2019)

23
<https://www.ifc.org/wps/wcm/connect/8a338a98-75cd-4771-b94c-5b6db01e2797/201901-IFC-
EMCompass- Blockchain-Report.pdf? MOD=AJPERES> Accessed 15th August 2022.

Jacinta Bernadette and Upalat Korwatanasakul, ‘Cryptocurrency Regulations; Institutions and

Financial Openness’ [2019] 978 ADBI Working Paper Series
<https://www.adb.org/sites/default/files/publication/513726/adbi-wp978.pdf> accessed 28 June
2022

Jacqueline Wanjiku Waihenya ’Decoding the dilemma of crypto currency regulation in Kenya’
Nairobi University Masters dissertation(2020)

Jamie Redman, ‘Terra Launches New Chain Airdropping Luna 2.0 Coins- Token Value Slides
Over 70% From Price High’ (28 May 2022) <https://news.bitcoin.com/terra-launches-new-
chain-airdropping-luna-2-0-coins-token-value-slides-over-70-from-price-high/ > accessed 28
June 2022

Jon Southurst, 16 Japanese Exchanges Form Group to Self-RegulateDigital Asset Industry

https://bitsonline.com/japanese-exchanges-form-digital-asset-group/ accessed on 22/7/2022

Josias Dewey, Holland & Knight LLP, Global Legal Insights – Block chain & Cryptocurrency
Regulation (2019) First Edn. Global Legal Group Ltd, London pg.6
<https://www.acc.com/sites/default/files/resources/vl/membersonly/Article/1489775_1.pdf >
accessed on 15th August 2022.

Kumah SP and Odei-Mensah J, ‘Are Cryptocurrencies and African Stock Markets Integrated?’
(2021) 81 The Quarterly Review of Economics and Finance 330

Kevin Helms, Japan to provide G20 with Solution for Cryptocurrency Regulation
https://news.bitcoin/japan-g20-cryptocurrency-regulation accessed on 22/7/2022

Liam Gibson, ‘After Terra, Luna Crashes, Regulators Count Cost of Crypto’ Aljazeera (20 May
2022) <https://www.aljazeera.com/economy/2022/5/20/after-terra-crash-investors-and-
regulators-count-cost-of-crypto> accessed 28 June 2022

24
Louis Denicola, ‘Centralized v Decentralized cryptocurrency exchanges’(2022)
<https://www.experian.com/blogs/ask-experian/centralized-vs-decentralized-crypto-exchanges>
accessed 25th August 2022

Lu C, ‘Cryptocurrency and Digital Assets: A Positive Tool for Economic Growth in Developing
Countries’ [2022] SSRN Electronic Journal

Mary-Ann Russon, Crypto-currencies gaining popularity in Kenya (22 February 2019) Available
at <https://www.bbc.com/news/business-47307575> accessed on 15th August 2022.

Satoshi Nakamoto, “Bitcoin: A Peer-to-Peer Electronic Cash System” (2008)

<https://bitcoin.org/bitcoin.pdf> accessed 28th May 2022

South Africa Reserve Bank, Position Paper on Virtual Currencies, 3rd December 2014 SAR.
https://www.resbank.co.za/RegulationAndSupervision/NationalPaymentSystem(NPS)/Legal/
Documents/Position%20Ppaper/Virtual%20Currencies%20Position%20Paper
%20%20Final_02of2014pdf accessed on 17/7/2022

TaxKenya, ‘Cryptocurrencies and Taxation in Kenya’ (www.taxkenya.com14 November 2017)

<https://www.taxkenya.com/cryptocurrencies-taxation-kenya> accessed 29 August 2022

Uyduran B, ‘The Crypto Effect on Cross Border Transfers and Future Trends of
Cryptocurrencies’ (2020) 16 Financial Internet Quarterly 12

Wambani,Linda.M ‘Feasibility of cryptocurrencies as a valid legal tender in Kenya’s financial

market’ University of Nairobi Research Archive(2022)
<http://erepository.uonbi.ac.ke:8080/handle/11295/108753> accessed 22nd August 2022
Wray LR, ‘From the State Theory of Money to Modern Money Theory: An Alternative to
Economic Orthodoxy’ [2014] SSRN Electronic Journal

Yessi Bello Perez, The Differences Between Cryptocurrencies, Virtual, and Digital Currencies
(19 February 2019) <https://thenextweb.com/hardfork/2019/02/19/the-differences-between-
cryptocurrencies- virtual-and-digital-currencies/> accessed on 15th August 2022.

25
Zeke faux and Muyao Shen, ‘A $60 Billion Crypto Collapse Reveals a New Kind of Bank Run’
Bloomberg (19 May 2022) <https://www.bloomberg.com/news/articles/2022-05-19/luna-terra-
collapse-reveal-crypto-price-volatility> accessed 28 June 2022

26