Marathon Digital, a crypto mining company, is currently engaged in discussions with the Kenyan government regarding the country’s cryptocurrency policy and the energy requirements for crypto mining. Kenya has been gradually implementing regulations in the crypto market.
During the American Chamber of Commerce Kenya Business Summit, President William Ruto announced that Marathon has been requested to consult with the National Treasury and Ministry of Energy. The summit took place in late April but was not immediately reported on.
Among the attendees at the summit was U.S. Commerce Secretary Gina Raimondo, and Marathon was a platinum-level sponsor of the event. In his keynote speech, Ruto mentioned the talks with Marathon, stating that the company is based in the United States but also has joint mining ventures in Abu Dhabi and Paraguay. Marathon is one of the world’s top five largest crypto miners. If the discussions result in Marathon establishing a presence in Kenya, it would not be the first crypto miner to operate in the East African country.
In the past, the Kenyan government had a negative attitude toward cryptocurrency. However, in November 2022, two months after Ruto took office, efforts were made to regulate crypto. The International Monetary Fund raised concerns about the loose crypto regulations in Africa that same year, with Kenya ranking 11th globally in terms of crypto adoption.
The bill to tax and regulate crypto is currently being considered and is open for comments. The government sought advice from the Blockchain Association of Kenya regarding a bill for a virtual asset service provider.
It is worth noting that the United States has previously advocated for the interests of the American crypto industry in Kenya. However, their attempts to persuade Kenya to lift its suspension of Worldcoin activities in the country were unsuccessful. The Kenyan government ordered the shutdown of Worldcoin operations in August due to security concerns, but the company did not immediately comply with the government’s order.
In conclusion, Marathon Digital’s discussions with the Kenyan government regarding cryptocurrency policy and energy requirements for crypto mining reflect Kenya’s gradual efforts to regulate the crypto market. The government has sought advice from local blockchain associations and is currently considering a bill to tax and regulate crypto. The United States has previously tried to defend the interests of the American crypto industry in Kenya, but faced challenges in doing so.