Nairobi, Feb. 19 -- Kenya is working on new regulations to police trading in cryptocurrencies such as Bitcoin on growing fears that the increased transactions in virtual assets in the country could increase risks of money laundering and terrorism financing.

A technical working group set up to advise the Treasury on cryptocurrency is currently preparing the draft regulations to be forwarded to the Cabinet for adoption, marking one of the key interventions in addressing weaknesses in its financial system.

"Right now, there is a sectoral working group that is working on developing a policy document to guide on developing a legal framework which will prescribe what needs to be done and who will be the regulator for digital assets providers,...