The Central Bank has linked the use of Bitcoin and any other illegal tenders in Kenya to terrorism and money laundering due to the untraceable nature of their transactions.
CBK has also warned that the digital money platforms highly expose users to potential losses due to lack of underlying or backing of assets and the value of the virtual currencies.
The bank described itself as the sole regulator of currencies in the country. The move comes a day after a Kenyan High Court judge issued a preliminary ruling that telecoms operator Safaricom will not be ordered to Reinstate Bitpesas access to the M-Pesa mobile money service.
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