Nairobi, Jan. 4 -- The Treasury has issued draft rules guiding how investors will raise funds through initial coin offerings, allowing firms to issue their own digital currencies for investors to buy.

An initial coin offering (ICO) involves a company raising funds by giving investors tokens for their cash or cryptocurrency, such as Bitcoin, as opposed to obtaining shares in the company through a traditional approach, such as an initial public offering (IPO).

The Treasury rules will help regulate the promotion, sale, and distribution of tokens in the pursuit of financial stability and consumer protection

The regulation will also establish disclosure rules that require adequate, accurate and balanced information to be disclosed to anyone...