Cryptocurrencies are not liked by most banks, and they have retaliated. In India, before RBI said that the 2018 crypto ban was not active, banks sent out warnings to users trading in crypto. And similarly, Kenyan banks are now warning users about the risks associated with crypto trading. Yes, they are not threatening them, saying that their accounts will be closed but telling users that they should know about the risks. Customers who have used their debit or credit card to buy crypto were the ones who got the alerts.
The warning from Kenyan banks
NCBA bank in Kenya has advised users against buying or hodling any coins. The warning said that Bitcoin is not a legal tender in Keyna, and any protection won’t be given to those who trade in the cryptocurrency. If something goes wrong or the exchange where users are trading goes out of business, then the government or bank won’t be responsible. Yes, they also used the reserved line for every bank, which says that crypto is untraceable and is used by criminals.
One warning that did seem fair was the risk associated with unregulated exchanges. We have heard in the past that users have lost money because of exchange going out of businesses, doing fraud, or getting hacked. And if such a thing happens, the bank can’t do anything. The banks also said that they are not in favor of crypto transactions.
Even in the past, Kenya has taken steps to caution and warn users against crypto. In 2015, they issued an advisory asking users to refrain from such transactions. And in 2018, another one was released, but this time, it was just for banks. But like every other country, this had not affected transaction volume and growth. In fact, the rate of peer-to-peer transactions has increased quite a lot in Keyna in recent times.
There has been a colossal growth in crypto trading in 2020-21. Even though governments and banks have tried to undermine it, the returns were so high that it became an irresistible investment. From creating tax barriers for investors to releasing FUDs, a lot has been tried. At the same time, China has officially banned crypto about 10 times now. All this shows that crypto is now more or less a global thing and has gotten acceptance.
What are your thoughts on Kenyan banks warning users against investing in crypto? And do you think it will reduce volumes in the country? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.