NAIROBI, Kenya, Feb 6 – A new bill has been drafted by the Blockchain Association of Kenya (BAK) to support the country’s virtual industry.
The Virtual Assets Service Provider (VASP) targets to address industry, consumer, and regulator concerns by proposing licensing and consumer protection frameworks, anti-money laundering and counter-terrorism financing (AML/CTF), and a regulatory sandbox.
The VASP draft bill comes three months after Kenya’s lawmakers mandated the community-born industry lobby group to develop a draft bill to regulate crypto assets in the country.
“Since our organization was founded in 2017, we have dreamt to see Kenya elevate its status to a digital asset hub, alongside other jurisdictions like Singapore and Dubai. The draft bill is a significant step in realizing our vision,” Michael Kimani, founder and chairman of BAK, said.
Members of the public as well as stakeholders have until tomorrow to submit their views and recommendations.
Thereafter, BAK will revise and incorporate feedback into the next iteration of the bill and deliver it to the National Assembly’s Departmental Committee on Finance and National Planning by February 14th.
“By fostering collaboration between legal professionals, regulatory authorities, and industry players, we can navigate the regulatory challenges of digital assets more effectively and pave the way for innovation and growth in the blockchain ecosystem,” Allan Kakai, the Director of Public Policy and Regulatory Affairs at the Association, who led a team of bill drafters contracted by the lobby group, said.
Regulation of digital assets has been a contentious topic in the last year, with developed countries such as the United States, Hong Kong, and Singapore setting the tone for reining in an industry perceived as wild west by mainstream financial regulators.
In Africa too, countries like Nigeria and South Africa have already put in place regulations to manage the industry, which is seen as enabling capital flight and providing avenues for criminal activity such as money laundering.
“Digital assets, and blockchain present an opportunity for the Kenyan Government to tap into new ways of fundraising investment into the country to support Kenya’s economic recovery,” BAK co-founder and Chief Executive Officer Paul Gachora stated.
“Our goal is to help Kenya raise $1 billion in foreign direct investments to various sectors as outlined in Kenya’s medium-term economic plan by 2027.”
