Kenya takes pioneering step: Industry representatives tasked with draft crypto regulation bill

In a groundbreaking development, the Kenyan National Assembly has taken a historic step towards regulating the cryptocurrency industry. The assembly has directed the Blockchain Association of Kenya (BAK) to prepare the first draft of a virtual asset service provider’s bill, marking the first instance globally where industry representatives are entrusted with such a responsibility.

Collaborative approach & industry expertise at play

The directive comes after BAK engaged in discussions with the National Assembly’s Departmental Committee on Finance and National Planning on 31 October. During the meeting, BAK outlined key areas essential for a robust crypto regulatory framework, including licensing, taxation, consumer protection, and anti-money laundering measures. Emphasising the urgency of clear regulations, BAK pointed to Kenya’s global adoption index rank of 19 and the country's substantial $19 billion crypto volume between July 2021 and June 2022.

Challenges ahead, but a promising future for crypto regulation

While challenges lie ahead, including addressing concerns from regulatory bodies like the Central Bank of Kenya and the Capital Market Authority, Kenya’s decision to involve industry representatives signifies a progressive approach. If successful, this pioneering move could serve as a model for other nations aiming to establish a secure and sustainable framework for the rapidly evolving web3 space.

This bold step not only highlights Kenya’s commitment to becoming a global leader in innovation and digital finance but also opens the door to a future where industry collaboration and regulatory clarity can coexist, fostering an environment conducive to blockchain technology and cryptocurrencies.