In the face of the overall negative attitude toward digital assets on the part of financial regulators, P2P marketplaces became the platforms of choice across the entirety of Africa. As the world leader in P2P cryptocurrency exchange, Kenya has drawn a lot of attention from many P2P exchange service providers.
Bitpapa is one of them, and it has recently entered the Kenyan crypto market.
Case for P2P Exchange in Kenya
In countries where access to traditional financial services is limited or lacking altogether, cryptocurrencies have become an alternative avenue for increasing financial inclusion. This is true for most of Africa.
Kenya alongside Nigeria and South Africa is one of the three largest cryptocurrency markets in Africa and among the top 10 worldwide in terms of cryptocurrency adoption.
However, the financial authorities of these nations, as in many other parts of Africa and the world as a whole, seem to be more interested in preserving the gloomy status quo, no matter how poor the local population is or how high the inflation rates are.
For example, Nigeria’s central bank as recently as 2021 chastised cryptocurrencies as a means for conducting “illegal activities including money laundering, terrorism financing, and tax evasion”. In short, you name it. It’s a little surprising that the central bankers of this country outlawed all bank operations related to or involving cryptocurrencies.
Well, the Naira, the sovereign currency of Nigeria, is not up to the mark as far as all these ignoble purposes are concerned. But this can hardly be considered a real-life advantage, given that the currency loses around 20% of its value year in and year out.
The Kenyan monetary authorities seem to be more careful about the language they use concerning cryptocurrencies by simply pointing out the risks associated with cryptocurrency transactions and trading. In a nutshell, the central bank of Kenya (CBK) advised the public to stay away from cryptocurrencies.
At the same time, the CBK has warned all local banks to refrain from executing cryptocurrency-related transactions under the penalty of losing their license.
This policy effectively prevented global centralized exchanges from entering the cryptocurrency market in this African country. Because they can’t legally open bank accounts in Kenyan banks to offer cryptocurrency exchange services to locals in the Kenyan shilling, the official currency of Kenya, they have to back off from this market.
Maybe, that was the central bank’s intention all the way – to force global platforms out.
But no matter the real motivation of the regulator, in the end, it only provided more room for P2P marketplaces. As these marketplaces don’t accept fiat deposits, they don’t need to open accounts in local banks and are thus beyond the authority of the CBK.
This largely explains the wild popularity of P2P marketplaces in Kenya and other African countries that are exercising similar policies toward cryptocurrencies.
Bitpapa Joins the Fray
Bitpapa has been offering cryptocurrency trading services since 2018, and as a global p2p marketplace operating worldwide, it was only a matter of time till it entered the highly lucrative Kenyan cryptocurrency market.
This time has come. Now users can trade their Bitcoin (as well as Ethereum, TON, Monero, and USDT) for the Kenyan shilling in a safe and secure P2P environment via a website, mobile app, or Telegram bot (unique among crypto trading platforms).
And for that, users don’t need to pass ID verification or confirm their phone number. Simple registration with their email will do just fine. Users can start trading immediately after they activate their account by following the link sent to the inbox. There are no limits on how much users can trade daily if they choose to stay unverified.
All accounts on Bitpapa are born equal and treated equally. But if users happen to run into any problems or just have some questions, Bitpapa’s friendly and knowledgeable support will help users in less than no time 24/7.
Whether you are the buyer or the seller, all your trades are always protected by the marketplace.
When users buy cryptocurrency, they can be sure that the seller lives up to his end of the bargain. The cryptocurrency they buy is locked in escrow, which prevents malicious traders from ripping them off. If the seller doesn’t release coins on his own once you pay him, you start a dispute and then the marketplace intervenes.
On the other hand, you, as the seller, release the coins only after you have received the payment, and the burden of proof is on the buyer. He must prove that he sent you the payment according to provided details.
So, the trade is either carried through and the counterparties receive their due, or it gets canceled with no one losing anything.
It is not uncommon to use P2P marketplaces as remittance services. Internal transfers on Bitpapa are instant and free of charge, and you can use them to send coins from one user to another. All wallet addresses remain the same – Bitpapa knows which belongs to the marketplace and distinguishes between internal and external addresses automatically.
Moreover, with the powerful Telegram bot, users can create Bitpapa codes and give them to their friends or customers. These codes can then be redeemed on Bitpapa to top up one’s balance on the platform, instantly and at no cost.
Now that Bitpapa has come to Kenya, the competition in this market is set to grow much fiercer. But in the end, it is simple users who are going to win.
Come Get It
As the story behind cryptocurrency adoption in Kenya and other African countries demonstrates, if people find something helpful, they will always find a way to use or acquire it even against adverse conditions such as resistance from the authorities.
Cryptocurrencies proved to be beneficial to Kenyan users as well as worldwide, and Bitpapa aims to help them get what they want.
Disclaimer: This is a paid post and should not be treated as news/advice.