Kenya has the largest population of crypto users in the whole of Africa. Not a long ago the country had a vast number of financial technologies revolving around such as mobile-based money transfer, mobile optimization for bank accounts, etc.
Kenya serves as a major financial hub today because of the consistent successes of cryptocurrency -especially Bitcoin. We all know the number of ways we can use this trillion-dollar crypto but very few of us know how to obtain bitcoin.
Among all other ways, Bitcoin mining is the most common and widely used way to earn bitcoin. A set of miners uses a certain blockchain system and creates blocks by solving complex mathematical problems on their computers. To know more about bitcoin mining, check out British Bitcoin Profit and consider this option to make huge profits in less time.
Today, Kenya has a pool of expert bitcoin miners who have quit their corporate jobs and shifted to bitcoin mining, making millions. Like Eugene Mutai- a skilled and well famous bitcoin miner who believes bitcoin and other Cryptos are a direct way to bring financial independence in their lives and whatever country they reside in. He doesn’t call mining a risk but a worthy option to change your financial state as do or die. It’s pretty inspiring to acknowledge the success of Eugene and many other miners but fortunately, mining bitcoin is not as easy and in any other. With respect to this fact, let us further dive into if it’s possible to mine bitcoin in Kenya?
Today, Kenya leads first among the other African countries when it comes to cryptocurrency holdings and blockchain related transactions. Primarily, the Kenyan government was not much interested in interfering with cryptocurrency but later on December 15, the government of Kenya prohibited the mining or trade of cryptocurrency especially bitcoin, calling it illegal. And, someone not obeying the government order will be subjected to severe consequences.
Following this, the CBK also warned people from dealing with virtual currencies or involving with any platform to perform this illegal activity. The public notice also included the banning of initial coin offerings (ICO) because of the recent crimes happening by its use in unsafe hands.
As long as bitcoin mining is concerned, the central bank of Kenya (CBK) marks bitcoin as an unregulated digital currency that is not associated with any government or higher authority. As a result, the existing bitcoin supply in the country is not allowed to be traded or used in any other way. Moreover, all future bitcoin mining is strictly prohibited in any scenario concerning obeying the laws imposed by the Kenyan government.
The reason for this significant announcement at a point when Kenya was massively benefitted from the sky-rocketing prices of Bitcoin.
- While on one hand, the transparency of bitcoin is extremely useful for e-commerce to do quick and hassle-free transactions, while; on the other hand, this anonymity of crypto users has been the cause of several crimes in the country such as money laundering and illegal activities.
- Kenya being a massive crypto country has a number of crypto exchanges present. In this crowd, finding the right yet credible crypto-bitcoin exchange was hard. Hence, people settled down on scam and fraud exchanges for exchanging their precious cryptos. As a result, Kenyan investors lost huge sums of money on the closing and collapsing of these exchanges without informing.
- The high volatility of nature also proved as a major problem for Kenyans. Being an impulsive group of people, numerous Kenyans sold their precious assets to invest in crypto without thinking of the negative consequences they could face.
Due to which Kenyans now had no backing of assets or fortune left which caused a sense of financial insecurity among the country. This speculative nature of virtual currencies scared the government for the future and thus, they restrained the country from using bitcoin.
This was a summary of the detailed public notice issued by the government of Kenya to its people. After the issuance, the government-controlled the bank accounts of all those who were found mining bitcoin. This severely disturbed the financial states of many crypto users who didn’t take the orders seriously and kept mining or trading bitcoin.