In a groundbreaking move, Kenya is poised to become the global pioneer in allowing industry experts to shape the regulatory landscape for cryptocurrencies. The National Assembly’s Departmental Committee on Finance and National Planning has assigned the Blockchain Association of Kenya (BAK) the pivotal role of crafting the initial draft of what could evolve into a comprehensive “virtual asset service provider’s bill.”
The pivotal discussion unfolded on October 31, when the Committee on Finance and National Planning extended an invitation to BAK representatives to deliberate on the regulation of digital assets. Allan Kakai, the Legal and Policy Director at BAK, shared insights from the meeting with local media outlet Mariblock.
Kakai emphasized Kenya’s digital prowess, stating, “Kenya has always branded itself as the Silicon Savannah; we are a top-three player in digital assets volume in Africa.” He went on to stress the urgency of establishing a clear licensing and regulatory framework, cautioning that without such measures, neighboring countries like Nigeria, South Africa, Botswana, Namibia, and Mauritius might seize the opportunity, diverting capital flows away from Kenya.
In response to this call to action, the Committee granted BAK a two-month timeline to prepare the initial draft of the crypto bill. The official statement from the Committee’s social media account underscores the importance of public education on cryptocurrency trade, emphasizing the need to “demystify it.”
Kenya’s proactive approach to cryptocurrency regulation sets a precedent for other nations, signaling a commitment to fostering a conducive environment for digital asset innovation while ensuring responsible and transparent practices. The eyes of the global blockchain community are now on Kenya as it takes bold strides towards defining the future of cryptocurrency regulation.