The Directorate of Criminal Investigations (DCI) has dismissed a viral message warning Kenyans against investing in a supposed cryptocurrency scheme, terming it fake.
In a statement, the DCI clarified that the alert did not originate from the investigative body and urged the public to ignore it. The fake message had claimed that the DCI had raised an alarm over a Ponzi scheme disguised as a legitimate crypto investment opportunity.
According to the agency, the fraudulent scheme lured unsuspecting Kenyans by promising quick profits, only to defraud them later. The fake alert even went as far as advising victims to report to the DCI’s Economic Crimes Unit or the nearest police station.
Kenya’s laws are clear on Ponzi and pyramid schemes, which are outlawed under the Penal Code, the Capital Markets Act, and the Proceeds of Crime and Anti-Money Laundering Act. Offenders risk fines of up to Ksh10 million and/or imprisonment of up to 10 years, depending on the nature of the offence.
Kenya’s Crypto Regulation Landscape
This incident comes shortly after Parliament passed the Virtual Asset Service Providers Bill, which aims to regulate the fast-growing digital asset space. The legislation designates the Central Bank of Kenya (CBK) as the licensing authority for stablecoins and other digital currencies, while the Capital Markets Authority (CMA) will oversee crypto exchanges and trading platforms.
With Kenyans estimated to hold USD 1.2 trillion (Ksh155 trillion) in virtual assets, the new law seeks to create investor confidence and protect users from fraud.
An IMF report released in January revealed that Kenya had used stablecoins to manage international debt payments during a U.S. dollar shortage. Once President William Ruto assents to the bill, Kenya will join South Africa as one of only two African countries with clear crypto regulations.
