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How to Buy Bitcoin in Kenya

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Buy Bitcoin in Kenya

Since the beginning of 2017, the price of bitcoin has surged to new all-time highs after rallying by over 350 percent. This has boded well for bitcoin adoption in Kenya as more people come to recognise it as an alternative currency and as a potentially lucrative investment. If you are based in Kenya and want to purchase bitcoin but are not quite sure how to go about it, then this guide is for you. In this article, you will find the five best exchanges you can use to buy bitcoin in Kenya using Kenyan Shillings.

Remitano

RemitanoRemitano is a peer-to-peer bitcoin exchange where you can buy and sell bitcoin securely through an escrow service. The company has recently entered the Kenyan market to provide a bitcoin exchange and a bitcoin-based remittance service.

To buy bitcoin on Remitano’s platform you must first sign up using your email address. The login credentials for your new Remitano account will then be sent to your email. Upon account verification, you can access a list of local buyers and sellers and place an order immediately. To ensure transactional security Remitano acts as an escrow until both parties confirm the transaction. Once the transaction is complete, the bitcoins will appear on your wallet on the Remitano platform.

Belfrics Kenya

Belfrics bitcoin exchangeBelfrics is a new bitcoin exchange and payment gateway for merchants that recently entered the Kenyan market. Belfrics charges a 5 percent fee on transactions and has no minimum limits on bitcoin purchases.

To buy bitcoin you must first set up an account by creating a username and password. Your account will double up as your bitcoin wallet. The next step would be to top up your account using a bank transfer, which is required in order to receive payments and for account verification. With these steps completed, you can start trading by proceeding to the exchanges’ drop down menu clicking on the ‘Trade’ option. Once you have put in the amount you want to buy and have executed the order, your purchased bitcoin will appear in your wallet on Belfrics once the order has been filled.

BitPesa

BitPesaBitPesa provides a bitcoin cross-border payments platform that also provides a bitcoin marketplace for buyers and sellers. BitPesa is the most established and most funded bitcoin startup in Africa.

To buy bitcoin using BitPesa you first need to register for an account on the platform by inputting your details and verifying your account through a confirmation email. You will need to upload a picture of your ID which is necessary as per international laws and regulations.

To buy bitcoin log in and click on the ‘new transaction’ field and ensure you put the KES you have and the BTC you want. You can enter yourself, a different person or a contact you’ve used before. Add the bitcoin address of the recipient and confirm the transaction then follow the payment instructions. The recipient will receive the bitcoin amount within an hour.

Unfortunately, BitPesa announced on September 1, 2017, that it has introduced a minimum transaction limit of $25,000 for Kenyan customers and no longer verifies new Kenyan customers due to the difficult regulatory environment in Kenya, which has been hindering the company in making KES payments. Hence, only existing Kenyan high net worth indivduals and businesses can use BitPesa to exchange bitcoin.

LocalBitcoins

LocalBitcoinsConvert Bitcoin Into Local Currency is the world’s leading peer-to-peer cryptocurrency exchange that facilitates over the counter bitcoin trades.

To buy bitcoin, you first need to sign up for an account on the platform. Once that’s done, you need to input the bitcoin amount you want to buy in KES before proceeding to choose your preferred payment page. The platform ranks sellers based on transactional history and users are advised to go for sellers with high reputational scores. Upon clicking on the ‘buy’ field you will be provided with transaction details. You execute the trade by typing the amount of bitcoin you want in KES together with a personal message and click on ‘send trade request’ field. Once the payment is made click the ‘I have paid’ tab. The bitcoin will be released from an escrow into your wallet once the seller confirms receipt of the payment.

Paxful

PaxfulPaxful is a peer-to-peer bitcoin exchange that connects buyers and sellers in one convenient location.

Buying bitcoin using KES on the platform is simple and straightforward. The initial step is to log onto the site and click on the ‘buy bitcoin’ on the menu bar. Once you have input the bitcoin amount you require in the buy dialogue box, select your desired mode of payment for the transaction. Then, select a seller willing to sell you the amount you requested and agree on the payment method from the list of sellers. Similar to LocalBitcoins, the reputations of sellers are rated and it is important to choose buyers with high ratings. If you are satisfied with the conditions the next step to execute the trade by clicking on the ‘buy now‘ tab and you will then receive your bitcoin in your wallet once the transaction has been completed.

If you want to buy bitcoin using KES, you can try any of the above-mentioned bitcoin exchanges. Also, remember to transfer your purchased bitcoin to your own personal bitcoin wallet and do not leave them lying on an exchange as there they can be subject to cyber theft should the exchange get hacked.

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Nigeria’s Capital Markets Regulator to Create Framework for Cryptocurrency Regulation

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Framework for Cryptocurrency Regulation

Nigeria’s blockchain community and cryptocurrency exchanges could get a clear stance on the classification of cryptocurrencies from the country’s Securities and Exchange Commission (SEC) before the end of the year.

A Framework for Cryptocurrency Regulation Is Coming

According to a report by Pulse, the regulatory institution is set to implement the roadmap for the fintech industry as it pertains to its capital markets. According to the roadmap, between the last quarter of this year and the first quarter of 2020, the SEC is expected to:

  • Decide on its preferred classification of cryptocurrencies (either as commodities, securities or currency).
  • Develop a framework for the regulation of Virtual Financial Assets (VFAs) and VFA Exchanges.
  • Issue guidelines and standards for whitepapers and ICOs.
  • Develop a framework for KYC and due diligence for cryptocurrencies, Virtual Financial Assets, tokens, and ICOs.
  • Define clear classification for tokens based on their unique properties. They could be payment tokens, asset tokens, utility tokens or others.  

The Acting Director-General of the SEC, Mary Uduk, revealed at a Capital Markets Committee briefing last month that the Working Group to drive the implementation of the roadmap would be chaired by Adeolu Bajomo, the Vice-President of the Fintech Association of Nigeria. 

Cryptocurrencies as Commodities or Securities But Not as Currency

traderOne of the recommendations that stands out in the roadmap, which was prepared by a committee comprised of officials from the regulatory agencies, the private sector, and a member of the blockchain community, is for the SEC to recognise cryptocurrencies as commodities or securities, and not as a currency. This classification is expected to have tax implications for investors.

This recommendation is in line with the central bank’s directive last year, which stated that “virtual currencies” were not a legal tender.

Cryptocurrencies have lacked a single, definite identity. For example, Germany is treating them as money and means of payment while the US uses the Howey test to decide whether a cryptocurrency is a security or not.

Crypto Adoption in Nigeria

Citigroup, a US investment firm, reported in January 2018 that Nigerians were the third-largest holders of bitcoin as a percentage of gross domestic product (GDP). The use has ranged from ­trading to making fast, low-cost cross-border transactions, saving on the high fees taken by commercial banks and traditional money-transfer services.

Nigeria has a fast-growing young population with a significant chunk below the age of 35. But there is still a small number of people with access to the financial system. Less than 50 million people with bank accounts in a population of over 180 million. Blockchain applications could be a great way to onboard millions of underserved people into the financial system.

With the SEC expected to take responsibility for the regulation of cryptocurrencies in the country soon, we can foresee more scrutiny of Nigeria’s biggest crypto companies, which could lead to a more secure crypto trading ecosystem down the road. 

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Poor Financial Infrastructure? Why Ghanaians Need Crypto More Than Ever

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Ghanaians Need crypto

Ghanaian investors continue to face difficulties as the Bank of Ghana (BoG) continues to probe fund managers for mishandling funds. Is it time for one of the fastest-growing economies to look at cryptoassets for financial freedom?

A Three-Year-Old Banking Crisis 

Why Ghanaians Need BitcoinThe Ghanaian banking crisis started on August 14, 2017. The Bank of Ghana (BoG) revoked the licenses of UT Bank Ltd and Capital Bank Ltd and approved a Purchase and Assumption (P&A) transaction with GCB Bank Ltd that transferred all deposits and selected assets of the two banks after they were found to be insolvent.

The following year, the BoG subsequently revoked the universal banking licenses of five banks, including UniBank Ghana Limited, Construction Bank, Sovereign Bank, Royal Bank, and Beige Bank. Additionally, it issued a license to a newly created bank – Consolidated Bank Ghana Limited – which is wholly owned by the Government of Ghana.

After a tough time dealing with the aftermath of the shake-up in the banking sector, the BoG then proceeded with revoking the licenses of 23 insolvent savings and loans and finance house companies just weeks ago.

These happenings in the country’s financial sector have led to several issues in the world’s fastest-growing economy in 2019

A Time to Consider Cryptoassets?

With the current turbulences in the financial ecosystem in Ghana, one may raise the question: “Is it time for Ghanaians to consider cryptoassets as investments with real asset ownership and transparency?”

Bitcoin and other decentralised cryptocurrencies are a natural fit in situations like these. For investors and consumers to escape the uncertainty of such a disorganized space, they will have to hold assets that they directly control.

Cryptocurrencies allow users to own their assets and give them independence from regulated, mainstream and established systems. With cryptoassets, no financial institution is responsible for the safekeeping of your funds and, therefore, cannot mishandle your funds.

Unlike the current situation where thousands of Ghanaians are not sure of the future of their funds due to the changes in the financial sector over the last three years, cryptocurrency users always have control of their funds and can access them at any time.

Imagine a pregnant woman in Kumasi, Ghana who kept her money in a savings and loans institution ahead of giving birth to cater for the hospital bills but cannot access her funds and is now stuck in the hospital because the institution has been closed down.

If she held bitcoin instead, she could pay in BTC or easily exchange it to cedi, to pay her bills without any issues.

Growing Interest in Cryptoassets in Ghana

Perhaps, the point made above has already been registered in the minds of many in the country who have shown interest in cryptocurrencies, especially bitcoin.

bitcoin in ghana

Currently, Ghana sits at number three on the list of countries on Google Trends for the search keyword “bitcoin” and Accra sits at number two for the keyword “buy bitcoin“.

With a more deliberate effort to push education and adoption – like the BlockTech Women Conference Accra 2019 held last week – the existing interest in cryptocurrencies could translate into growing adoption that could disrupt the current financial system in the West African nation.

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Is Bitcoin Really A New ‘Safe Haven’ Asset?

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Safe Haven Asset

The launch of the Bitcoin blockchain in 2008 was a low-key affair among a fringe group of cryptography enthusiasts. Just over a decade later, the pioneer cryptocurrency is a world-famous phenomenon with a market value of about $10,000 at press time.

This is certainly a remarkable turnaround, which only the most ardent early supporters could envision. That said, bitcoin as a currency has taken a life of its own and is gaining rather sophisticated market functions. One of these is the emergence of Bitcoin as a possible ‘safe haven’ asset. How ready is bitcoin to perform this unique function? Let’s find out.

Bitcoin currently has a solid market presence. Moreover, a great number of retailers in the market, especially online, accept bitcoin payments. This means that bitcoin users can freely operate and trade which is a great leap forward.

Trading is efficient and simple because of modern exchanges where you can trade for USD, trade BTC-EURX or any major fiat and crypto trading pairs. Generally, bitcoin is now a currency and an asset you can freely own and transact with ease. At the moment, there are over 250,000 bitcoin transactions each day across the world.

Incidentally, some of bitcoin’s intrinsic factors have made it play a unique market function. For one, bitcoin is a finite currency. Unlike fiat which is freely printed by Central Banks, there will only ever be 21 million bitcoin. Whilst this has placed a ceiling on mass adoption as a currency, the finite virtue has made it an attractive proposition as an asset.

The Case for Bitcoin as A Safe Haven Asset

goldFor a historically volatile asset, bitcoin being discussed as a potential safe haven asset is remarkable. In years gone past, equity investors would regularly purchase gold during periods of market uncertainty to distribute risk. Gold is a traditional safe haven investment due to its scarcity and value. Can bitcoin take up such a role?

In the first few days of August 2019, stock markets went wild on fears of a USA-China trade war escalation. Simultaneously, bitcoin booked impressive gains of more than seven percent as opposed to the drops in the major stock markets. This is certainly not a fool-proof case for bitcoin as a safe asset. Regardless, crypto enthusiasts took the development with glee as part of a general argument for bitcoin’s status as a safe haven asset. The major arguments include:

  • Bitcoin is effectively immune to geopolitical tensions like the trade wars.
  • By virtue of decentralisation, bitcoin is independent of government monetary policy. This means that bitcoin prices are entirely market dependent. Accordingly, bitcoin (though significantly volatile) is attractive because it has no direct correlation to the volatility of other asset classes.
  • Bitcoin’s scarcity gives it innate value, like rare metals. Satoshi Nakamoto capped bitcoin supply at 21 million.

Potential Drawbacks

Is it that simple though? The fact that bitcoin has a life of its own is an impressive aspect of its position as an asset class. However, the case for bitcoin as a safe haven asset is not as straightforward as it may seem.

goldTraditional safe haven investments are usually boring. Gold, for all the credibility it has, has generated an average annualised return of 0.32 percent over the last five years. As a matter of fact, its value most of the time is relatively consistent. This would be fitting for the name ‘safe haven’ as it remains safe in the midst of market volatility.

However, bitcoin, even in the most generous terms, would be a ‘colorful’ safe haven. Bitcoin may have a value trajectory unique from the regular stock markets. However, this does not take away bitcoin’s volatility issues. Therefore, investors are as motivated to diversify risk in a volatile stock market as they are to cash in on potential outsize gains.

Taking prices from August 2018 to August 2019, bitcoin has appreciated more than 100 percent. This is certainly a very impressive return from an investment perspective. However, it does little to lend credence to the general idea of a ‘safe haven’ asset.

Moreover, bitcoin still has to navigate a number of regulatory challenges with global financial entities because to truly gain the status of a mainstream ‘safe-haven’, regulators like the SEC have to be on board. Additionally, the stability of the coin against hard forks and security of secondary players like exchanges can add to its credibility.

Is It a Safe Haven Asset?

From the aforementioned, you can look at it both ways. For an investor looking to distribute risk and have an asset class whose volatility does not correlate to mainstream asset volatility, bitcoin can act as a safe haven investment. However, it fails to live up to the classic role of a safe haven like gold in the market. Regardless, this debate will only intensify as bitcoin matures and grows further.

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