Crypto training session conducted by VACC for Kenyan legislators
In the heart of Nairobi, Kenya's capital city, a significant event unfolded as the Virtual Assets Chamber of Commerce (VACC) conducted a training session aimed at educating members of the Kenyan parliament's Committee on Finance and National Planning about virtual assets and their regulation. The session, facilitated with the support of global exchange Binance, was designed to help Kenyan regulators understand virtual assets and create effective regulations.
The training session comes at a critical juncture, as the Virtual Assets Service Providers (VASP) Bill 2025, which aims to regulate the operations of VASPs in the country, is currently in a two-week public participation stage. The bill, which was submitted to the National Assembly by the Kenyan National Treasury in April, proposes the creation of a new regulatory body, the Virtual Assets Regulatory Authority (VARA), to oversee virtual asset service providers.
However, the bill has been met with significant public uproar and controversy, leading to its temporary pause for revision. The concerns centre around watered-down Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) controls, as well as issues related to conflict of interest. The proposed regulatory framework has raised concerns among some local stakeholders about potential undue influence by large global crypto firms, particularly Binance, which reportedly funds VACC and may seek to sway regulations in its favour.
Despite the controversy, the Kenyan government's approach to addressing the knowledge gap about blockchain and cryptocurrencies for effective regulation seems to be multifaceted. The involvement of multiple government bodies and regulators (e.g., National Treasury, Central Bank of Kenya, Capital Markets Authority, Communications Authority) in VARA’s board suggests an institutional attempt to bring diverse expertise into regulatory oversight. Additionally, the bill and regulatory discussions have involved consultations with digital asset lawyers and industry stakeholders, indicating efforts to incorporate expert input and possibly build regulatory capacity.
As the VASP Bill 2025 goes through its revision, the focus remains on ensuring fair, transparent regulation that protects users and the country’s financial reputation. The training session organised by the VACC is a testament to the government's commitment to bridging the knowledge gap and creating a robust regulatory framework for the growing crypto ecosystem in Kenya. The revised bill is expected to be reviewed and potentially brought back to parliament later in July 2025 for further discussion.
- The Virtual Assets Service Providers (VASP) Bill 2025, currently in the public participation stage, aims to regulate the operations of VASPs in Kenya and create the Virtual Assets Regulatory Authority (VARA).
- The proposed bill, which seeks to address the knowledge gap about blockchain and cryptocurrencies for effective regulation, has been met with controversy due to concerns about watered-down Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) controls.
- The concerns also include potential undue influence by large global crypto firms, particularly Binance, which reportedly funds the Virtual Assets Chamber of Commerce (VACC) and may seek to sway regulations in its favor.
- The Kenyan government, recognizing the need for diverse expertise in regulatory oversight, has involved multiple government bodies and regulators in VARA's board, such as the National Treasury, Central Bank of Kenya, Capital Markets Authority, and Communications Authority.
- The regulatory discussions have also involved consultations with digital asset lawyers and industry stakeholders, indicating efforts to incorporate expert input and build regulatory capacity.
- As the bill undergoes revision, the focus remains on creating a fair, transparent regulation that protects users and the country's financial reputation, while bridging the knowledge gap for a robust regulatory framework for the growing crypto ecosystem in Kenya.
