Crypto Risks: The Central Bank of Kenya Joins Conversation

Crypto Risks

There are a lot of people out there that remain skeptical of the cryptocurrency sector. Whether it be calling for more crypto regulation, or simply warning investors of all the crypto risks, someone, in some country, has these opinions – and they’re voicing them.

Banks are Concerned about Crypto Risks

The latest to join the conversation surrounding crypto risks is the Central Bank of Kenya (CBK). This is not the first time the bank has voiced its opinion on the cryptocurrency sector, so Thursday’s statements are simply a reiteration of what the bank has already said. Simply put, the Central Bank of Kenya is looking to inform consumers of crypto risks. Why? So that it can – hopefully – deter domestic businesses from working in cryptocurrencies in the future.

Previously, the Central Bank of Kenya has stated that there is massive price volatility in the crypto sector. This is not untrue. After all, Bitcoin has developed a bit of a reputation for its fluctuation, plunging one week, climbing the next. Just take a look at this week, for instance. On April 12, Bitcoin (BTC) jumped more than $1,000 in roughly 60 minutes (quite possibly less than that). This caused the majority of the other currencies to enter green territory as well. The crypto market is doing well today, too. Bitcoin is above the $8,000 mark, and Ethereum (ETH) moved above $500 for the first time since late March.

Bitcoin and Ethereum aren’t the only two coins doing well today, either. Stellar (XLM) is up 17.20% in the past 24 hours, while NEO is up 8.85% in the past 24 hours.

So now we know the crypto market is doing well today. But, that doesn’t mean we know where the altcoins will be sitting next week. That’s the problem that the Central Bank of Kenya is trying to discuss. The bank is so concerned over the crypto sectors price volatility that it sent out a circular to various institutions on the subject.

What Did the Central Bank of Kenya Say about Crypto Risks?

Today, the governor of the Central Bank of Kenya, Patrick Njoroge, reiterated his previous statements on the crypto sector. Essentially Njoroge stated that there are a number of crypto risks, adding that these crypto risks tend to include the possibility of being the victim of fraud, money laundering, hacking, and a risk to your consumer protection.

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Interestingly, people are so infatuated with cryptocurrencies as they have a number of features that make them unique. However, Njoroge argues that it is these features, these unique, distinct features, are the thing making the consumer vulnerable to crypto risks, particularly money laundering. Meanwhile, the U.K. Central Bank is arguing the same thing. On March 2, the U.K. Central Bank announced that it will be attempting to tackle crypto money laundering.

What do you think about the Central Bank of Kenya’s statements? Do you agree that there are a number of crypto risks? If so, what do you think can be done to diminish these crypto risks?

Featured Image: twitter

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