UPDATE: After consultation with the appropriate regulator, BitKE has determined that drafting of a bill in Kenya is only legally done by the mandated regulatory bodies.
In a groundbreaking development, a Kenyan parliamentary committee has directed the Blockchain Association of Kenya (BAK) to prepare the inaugural draft of what could potentially become the Virtual Asset Service Provider’s Bill, colloquially referred to as the Crypto Bill.
While acknowledging that blockchain trade remains a complex phenomenon, Committee Members, they urged the association to undertake robust public education on cryptocurrency trade to demystify it. pic.twitter.com/O0B13j1J6F
— NAssembly KE C'tees (@NACommitteeKE) October 31, 2023
This proposal came following BAK’s second appearance before the National Assembly Committee on Finance and National Planning in October 2023. BAK’s initial engagement with the Committee took place in May 2023 when they unsuccessfully lobbied against the Digital Asset Tax (DAT) provision within Kenya’s Finance Act, 2023.
The objective of the recent parliamentary discussion was to forge a collaborative approach that empowers the Blockchain Association of Kenya to cooperate with the national government in shaping favorable policies for the regulation of cryptocurrencies and digital assets.
BAK Appeared before parliament together with:
During the session, the BAK team delivered a comprehensive presentation to the committee, emphasizing key elements that they consider pivotal in the formulation of a robust regulatory framework:
- Clear licensing framework
- Tax framework
- Consumer protection framework
- Anti-Money Laundering & Counter-Terrorism Financing (AML/CTF) measures
- Regulatory sandbox
In response to this presentation, the parliamentary committee issued a directive for BAK to draft and submit a bill to govern digital assets within a timeframe of just two months.
While acknowledging that blockchain trade remains a complex phenomenon, the Committee Members urged the association to undertake robust public education on cryptocurrency trade to demystify it.
The committee’s concerns come after the Kenyan government said there was little to no evidence that education to WorldCoin users was done following numerous instances of a lack of awareness of the product and the purpose for collecting biometric data.
The mandate given to BAK represents a significant step toward the realization of a comprehensive and forward-thinking regulatory framework for the digital asset industry in Kenya. It signifies a collaborative effort between the government and industry stakeholders to navigate the evolving landscape of cryptocurrency and digital asset regulation.
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