Pesamill Africa, a peer-to-peer and centralised exchange, has launched its services in Kenya expanding the already growing crypto scene in the country. This comes at a time when Kenya ranked 23 globally with regards to bitcoin trading volumes on Localbitcoins.com.
Founded by Brian Ngugi, a lawyer by profession, Pesamill is an exchange built for Africa with the aim of solving some of the major problems that face global crypto exchanges.
"It's good to see a Kenyan taking over the African crypto scene" Michael Kimani of Blockchain Association of Kenya #PesaMillAfrica Launch #LiveTheFuture pic.twitter.com/BTnPiNVCJ2
— Kenyanwallstreet (@kenyanwalstreet) September 26, 2018
The Pesamill Exchange
Pesamill offers a simple know your customer (KYC) process that only takes five minutes to complete, Pesamill’s founder and director Brian Ngugi said. The KYC process is tailored to the Kenyan environment which means that users will not have to give residence details as is the case with global exchanges.
He also said that the exchange is compliant with anti-money laundering (AML) requirements and has invested in security measures such as one-time password (OTP) and two-factor authentication (2FA) ensuring that users’ funds remain safe in their web wallets.
Pesamill currently lists five coins on its exchange namely bitcoin, ripple, bitcoin cash, ether, and litecoin. The exchange will include other cryptocurrencies, including African coins, in accordance with market demand.
Navigating the Regulatory Environment in Kenya
The Central Bank of Kenya (CBK) has severally warned Kenyans against dealing and investing in cryptocurrencies because of their risky nature. Unlike other countries such as India that have banned cryptocurrencies, the Kenyan regulator has, however, not made these currencies illegal in the country which means that citizens can use crypto at their own discretion.
ALSO READ; Kenya’s Central Bank Says It’s Open To Blockchain & Other Emerging Technologies
Pesamill’s founder and director Brian Ngugi noted that regulating the crypto space is important, adding that the exchange is prepared for regulators in Kenya.
"Cryptocurrencies have to be regulated. It is not a question of if but when" Brian Ngugi, Founder #PesaMillAfrica #LiveTheFuture pic.twitter.com/WvEJvmToWI
— Kenyanwallstreet (@kenyanwalstreet) September 26, 2018
Ngugi also observed that even though regulation can sometimes be a hindrance to crypto startups entering new markets, the users of a product can still continue using it if it satisfies their needs and wants.
Ending the Dependency on Foreign Currencies & the Proposed Local Digital Currency
During a panel discussion at the launch, Michael highlighted that the introduction of exchanges such as Pesamill into the African market offers an opportunity for eliminating foreign currencies such as the USD which have been limiting intra-African trade on the continent.
Presently, to purchase an item from Nigeria while in Kenya requires converting the Kenyan shilling to the US dollar. But with cryptocurrencies, this barrier is eradicated.
With regards to the proposed local digital currency by the Blockchain and AI taskforce, Michael is of the opinion that it is not a practical idea because Kenyans already have plenty of options to choose from when making transactions.
Pesamill’s founder said the exchange will launch in Uganda, Ethiopia, and Tanzania in the future.
