Kenya to Develop Regulatory Framework for Crypto
The Blockchain Association of Kenya (BAK) has announced that Kenya may become the first country in the world where industry representatives develop the regulatory framework for cryptocurrencies. The National Assembly’s Departmental Committee on Finance and National Planning has directed BAK to prepare the first draft of a bill that could regulate virtual asset service providers. BAK’s legal and policy director, Allan Kakai, stated that if Kenya fails to establish a clear licensing and regulatory framework, other African countries like Nigeria, South Africa, Botswana, Namibia, and Mauritius will take the lead in crypto adoption.
Committee Urges Public Education on Cryptocurrency Trade
The Committee on Finance and National Planning invited BAK representatives to discuss digital assets regulation. In response, the committee has given BAK two months to draft the crypto bill. The committee also urged BAK to conduct robust public education on cryptocurrency trade to demystify it.
Kenya’s Stance on Cryptocurrency Taxes and Worldcoin Project
In September 2023, Kenya introduced a law requiring cryptocurrency exchanges to withhold 3% of the transfer or exchange value of digital assets. BAK filed a complaint against this crypto tax in the High Court of Kenya. Additionally, Kenyan authorities recommended shutting down the operations of Worldcoin, a controversial digital ID crypto project co-founded by Sam Altman. Concerns over personal data harvesting led to this decision.
Hot Take: Kenya Paves the Way for Crypto Regulation
Kenya’s move towards developing a regulatory framework for cryptocurrencies demonstrates its commitment to embracing digital assets. By taking proactive steps, Kenya aims to position itself as a leader in crypto adoption within Africa. Establishing clear licensing and regulatory guidelines will not only attract capital flow but also ensure consumer protection and foster innovation in the crypto industry. With other countries in Africa closely watching, Kenya has the opportunity to set a precedent for responsible and inclusive crypto regulation on the continent.
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