Marathon Digital Collaborates with Kenyan Government on Cryptocurrency Policies
Summary:
Marathon Digital, a leading cryptocurrency miner, is liaising with the Kenyan government to discuss the country's crypto policy and the energy needs for mining. These deliberations came about as Kenya started working on its cryptocurrency regulations since November 2022, following President Ruto's inauguration. The U.S-cryptocurrency firm has mining operations globally and is among the top five worldwide. If it extends its presence to Kenya, it won't be the first to do so. However, a crypto taxation and regulation bill is still under discussion in Kenya. There are also reports of the U.S advocating for American crypto business interests within Kenya.
Marathon Digital, a prominent cryptocurrency miner, is reportedly in talks with the Kenyan government discussing policies on cryptocurrency and resource needs for crypto mining. Slowly but steadily, Kenya has been tightening regulations around its crypto market. President William Ruto, during the Kenya Business Summit held by the American Chamber of Commerce, revealed that Marathon Digital has been involved in deliberations with the Ministry of Energy and National Treasury. The summit took place in late April, though no immediate reports followed. U.S. Commerce Secretary Gina Raimondo was amongst the attendees and Marathon was a significant sponsor of the event. President Ruto, during his keynote, underlined the importance of the Marathon discussion: "This evidences the enormous transformative potential engulfed in a thorough understanding between East Africa and the U.S., particularly revolving around trade and investment.” Marathon Digital hails from the United States but also has mining operations in Paraguay and Abu Dhabi. It stands among the globally leading five crypto mining companies. If Marathon sets foot in the Kenyan market, it wouldn’t be the first crypto mining firm to do so.
The Kenyan government has always had a somewhat conservative stance towards cryptocurrency, although, regulation attempts began surfacing as of November 2022, a few months into Ruto's presidency. According to the International Monetary Fund's critique in November 2022, the African cryptocurrency regulation has been somewhat lax. Nonetheless, Kenya managed to rank 11th in global crypto adoption that year.
However, a bill proposing the regulation and taxation of cryptocurrency is still being debated and is open to public input. Blockchain Association of Kenya has also been consulted by the government for their insights on the virtual asset service provider bill.
On another note, the United States previously made unsuccessful attempts to defend American crypto business interests within Kenya, while proposing the retraction of Kenya's suspension of Worldcoin activities. The Kenyan government, as of August, issued an order to suspend Worldcoin operations in the country, pointing at security risks as the root cause, an order Worldcoin was rather slow to comply.
Published At
5/6/2024 8:44:30 PM
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