Best Bitcoin Margin Trading Platforms in Kenya

Is it allowed to use Bitcoin Margin Brokers in Kenya?

The situation regarding cryptocurrencies in Kenya is quite similar to that in Nigeria. Bitcoin and cryptocurrencies in general are not legal tender, they are not officially recognized as currencies or commodities, and therefore there is no regulation and no legal protection when people lose money at scams or hacked cryptocurrency platforms.

The Kenyan Central Bank warns against this, as you can read here. But at the same time cryptocurrencies are also not prohibited by law.

Regarding the lack of regulation and therefore the missing funds insurance it has to be said that trusted Bitcoin trading platforms have already proven in the past that they pay stolen funds back in the event of a hack, like Bitfinex and Binance did.

While banks still have a negative attitude towards Bitcoin & Co, there is a steadily increasing acceptance and use of virtual currencies among the population. Bitcoin and the Blockchain technology are very popular in Kenya – no wonder, since Kenya is considered a kind of African Silicon Valley.

So people are free to buy, sell or even trade Bitcoin and altcoins in Kenya. As CFD trading is also allowed, cryptocurrencies can be traded with leverage on Bitcoin margin brokers in Kenya.

Bitcoin Trading in Kenya more and more popular

Bitcoin is becoming more and more popular in Kenya. In fact, that interest in digital currencies is growing across the entire African continent, the strongest growth of Bitcoin adoption and trading activities can be seen in Nigeria. Nevertheless, also Kenya stands out.

Despite warnings from the Kenyan Central Bank about the volatility of cryptocurrencies, some companies in Nairobi accept Bitcoin payments since quite a while. And Kenya is digital, Kenya is often referred to as the Silicon Valley of Africa.

The total number of Bitcoin transactions in Kenya is estimated by the Blockchain Association of Kenya to be over USD 1.5 million. But can the technology really take off?

Currently, the cryptocurrencies Bitcoin, Dash and Litecoin are mainly used in Nigeria, Ghana, Kenya, Botswana, South Africa and Zimbabwe. Blockchain technology is also used by start-ups and tech conglomerates in Kenya to solve problems, such as an IBM platform that helps small businesses prove their creditworthiness for loans.

Prevent Theft thanks to Bitcoin

Tony Mwongera, Managing Director of Healthland Spa in Nairobi, has been accepting Bitcoin payments since 2018. Mwongera says

"I chose to use cryptocurrencies because there was so much theft in my business. So I said, let me go a way that is secure and I can use technology. We now also use Bitcoin to pay for purchases."

However, if you look at the total number of people using virtual currencies today, this is still relatively small in Kenya - only about 40,000 people have ever made a transaction with Bitcoin.

In Kenya the Banks are fighting Bitcoin

One reason why the penetration of the cryptocurrency is not increasing even more is that the Central Bank of Kenya prohibits banks from trading virtual currencies.

Banks are not allowed to open accounts for people who are known to trade virtual currency. This means that people cannot easily convert Bitcoin payments into cash or mobile money.

"Cryptocurrencies can allow an unlimited number of transactions and ensure that the volatility, lack of control and non-acceptance of cryptocurrencies in different countries can reduce the impact of a currency".

the economist and political expert Vincent Kimosop told the BBC.

The Blockchain Association of Kenya (BAK) does not agree with this way of thinking and is actively working to inform the country about the advantages of cryptocurrencies and blockchain. The non-profit organization explains that the use of virtual currencies can significantly reduce transaction costs and enable people without bank accounts to make and receive payments quickly.

According to the Blockchain Association of Kenya, there are many things that Kenyans can use Bitcoin for, be it to pay traders in China for goods, or enable Nigerians to send their children to school in Kenya, or simply pay young African freelancers to work online.