Kenyan Federal Government Tightened Regulations on Virtual Currencies
Kenya has shut down the bank accounts of the Bitcoin startups; therefore, the Minister cannot sell the BitPesa shares at the same time. The Kenyan Ministry of Communications and Information Technology that causes the Minister Joe Mucheru of the incapability to sell his shares right in the BitPesa right after the moment that the federal government had imposed tightened regulations on the virtual currency.
Joe Mucheru was the former Director of BitPesa and also one of the company’s few shareholders that have stated in one of his interviews that the Kenyan financial regulators had forced the financial institutions to finally shut down the bank accounts of the well-known Bitcoin startup such as the BitPesa. The regulatory policies have precluded the shareholders similarly to Joe Mucheru from selling his stake in the company and have also made it harder for the investors to unearth potential buyers. Then Joe Mucheru has mentioned that “I actually cannot find any single buyer. The sale had fallen off the grid, due to the charges filed right in the CBK policy on the digital frequencies was all of the bank accounts were closed and also the business in Kenya closed.”
One of the irresolute factors of Joe Mucheru’s claims is the BitPesa is an international company that fully operates in a variety of African countries and regions onto the outskirts of Kenya. Hence, even if Kenyan regulations forcedly shut down BitPesa in Kenya; and Joe Mucheru should be able to sell his shares as a stakeholder of the company to the other willing buyers right in the regions including Nigeria, Tanzania and also Uganda. Moreover, BitPesa has offices and staff members based in London and San Francisco, California, USA and apart from its primary team in its head office that is located in Kenya’s capital, Nairobi.Plausible, Joe Mucheru was elected in December of year 2015 to become an information minister for the ICT of the Kenyan government, While the impact of the Central Bank of Kenya or the CBK had a sharp warning against the Bitcoin and the other virtual currencies on the cryptocurrency ecosystem of Kenya was at this very moment not that crystal clear, and Joe Mucheru’s claims can be represented as the local government’s means of strengthening their regulations on the Bitcoin. And the Central Bank of Kenya as well as the other government-supported agencies has tightened their regulations on the Bitcoin right after the BitPesa’s legal battle with the Safaricom. The government feared that the Bitcoin and BitPesa innovative and efficient payment networks would indeed impose threats on the existing regulated financial services such as the M-Pesa and the Airtel.