Kenya’s efforts to set rules for digital asset companies have raised concerns among some local crypto startups.
A new bill, which would create a regulatory body for the sector, includes a group called the Virtual Asset Chamber of Commerce (VAC) in its governance structure.
Startups claimed that this group has close ties to Binance
$4.72B
and could influence the future of crypto regulation in the country.
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The Kenyan Wall Street reviewed documents showing VAC will have a seat on the regulatory board if the bill passes. Some entrepreneurs argued that Binance has funded VAC’s public events and discussions, and that the group acts more like a partner than a neutral advisor.
According to the report, Binance paid VAC $6,000 per country each month for policy support. This has raised worries that VAC could push for regulations that favor Binance.
The report also mentioned past efforts by VAC to become involved in Rwanda’s crypto rules, which led some to question whether the group is serving wider interests or simply representing Binance.
A Kenyan industry stakeholder warned that allowing a group tied to a crypto exchange to help shape rules could hurt Kenya’s international standing.
However, VAC’s director, Basil Ogolla, stated that VAC has held discussions with the IMF, the Central Bank of Kenya, and the National Assembly. According to him, being included in the regulatory process is a result of this track record and the trust the group has built.
Meanwhile, a US Senate meeting held to discuss potential new rules for the digital asset market saw only a few lawmakers attend. How did Senator Cynthia Lummis respond? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
