The Blockchain Association of Kenya’s Role
You have been asked by the National Assembly’s Departmental Committee on Finance and National Planning to assist in creating Kenya’s first draft bill on crypto asset regulation. The committee has also requested that you provide thorough public education on cryptocurrency trade to clarify any misconceptions.
Kenya’s Initial Draft Crypto Bill
The Kenyan parliamentary committee has tasked the Blockchain Association of Kenya (BAK) with conducting extensive public education on cryptocurrency trade to demystify it. Additionally, the association, along with other stakeholders, has been asked to prepare the initial draft of what could be Kenya’s virtual asset service provider’s bill.
Digital Asset Tax
In its recent report, Chainalysis revealed that Kenya is one of Africa’s top recipients of crypto inflows, despite being ranked third after Nigeria and South Africa. However, most BAK members are reportedly not paying the digital asset tax, leading Kenyan lawmakers to inquire about this issue. BAK officials explained that members were unable to pay due to current structures that do not support tax payment and identified a circular issued by the Kenyan central bank as a complicating factor.
Hot Take: The Importance of Regulation and Education
The call for the Blockchain Association of Kenya to assist in drafting Kenya’s initial crypto bill underscores the growing importance of regulation in the crypto space. Additionally, robust public education is crucial for dispelling misconceptions surrounding cryptocurrency trade. As Kenya continues to be a key player in African crypto transactions, effective regulation and education will be essential for sustainable growth and development in this sector.
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