Meme coins have gained big across the continent but recently have had many homegrown tokens sprouting in Africa.
Such meme coins are probably not going to last long because of regulatory uncertainties. As Kenya joins the rest of Africa in establishing a substantive legal framework around the newly emerging virtual asset category, many recent shifts in global policy, such as the new guidelines from the U.S. Securities and Exchange Commission ( SEC), could further influence how meme coins are treated in markets around Africa.
Key Takeaways:
- Kenya’s National Treasury is reviewing a 2025 Draft Crypto Policy
- According to the SEC, memecoins are collectibles and not securities
- Potential taxation and licensing requirements for crypto firms in Kenya.
- The effects on the African crypto markets and global investors.
Kenya’s 2025 Crypto Policy: What’s Changing?
Kenya’s National Treasury introduced the “National Policy on Virtual Assets and Virtual Asset Service Providers” in December 2024.
Major Provisions in the Draft Policy:
- Licensing requirement for Virtual Asset Service Providers (VASPs)
- Complying KYC(Know Your Customer) and AML (Anti-Money Laundering) compliance
- Tax on digital assets and transactions
- Consumer protection & fraud prevention
Current Status:
- Closed Public Review in January 2025.
- Final regulations expected later this year.
SEC’s Landmark Decision on Memecoins and Its Impact on Africa
Last month marked a month of paradox when, the U.S. Securities and Exchange Commission (SEC) made a rather startling announcement stating that most memecoins were not securities.
What the SEC Ruled:
- Memecoins create no yield and offer no corporate ownership.
- Investors in memecoins do not receive the protections afforded to securities under U.S. law.
- Crypto platforms may operate without SEC registration to offer memecoins.
- Dismissal of the lawsuit against Coinbase indicating a shift in policy.
Why This Matters for Kenya and Africa
- Kenya may follow a similar line as that of the SEC by allowing memecoins to move around as free agents.
- If Kenya classifies memecoins as financial assets, they may face stricter regulations
- The decision affects African crypto exchanges listing meme-based tokens
Global vs. African Crypto Regulations: Where Kenya Stands
How Different Regions Are Handling Memecoins & Crypto:
| Region |
Crypto Regulations |
| United States (SEC) |
Memecoins are not securities, minimal regulation |
| European Union (MiCA – Markets in Crypto-Assets) |
Clear licensing and compliance rules for exchanges |
| Nigeria |
Strict crypto taxation and exchange regulations |
| South Africa |
Recognized crypto as a financial product |
| Kenya (Draft Policy) |
Pending regulation, could enforce taxation and licensing |
What’s Next for Memecoins in Africa?
- Should Kenya follow in the SEC’s footsteps, Memecoins could thrive but without any form of investors’ protection.
- Strict regulations by Kenya: Memecoins could face taxing and licensing hurdles.
- Should Kenya embrace memecoins or further regulate them?
Frequently Asked Questions (FAQ)
- Are Memecoins Legal in Kenya? Currently, memecoins exist in a gray area in Kenya’s crypto policy, which is under review, without any formal classification.
- How will Kenya likely establish regulations regarding cryptocurrencies in 2025? The proposed policy by the National Treasury lays out the potential licensing, KYC/AML policies, and taxation for service providers dealing in cryptocurrency.
- Is Kenya following the SEC’s stance on memecoins? Not yet. While the SEC has classified memecoins as collectibles, Kenya may adopt a stricter-proposed stance regarding financial compliance.
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