According to Cointelegraph, the Blockchain Association of Kenya (BAK) has been directed by The National Assembly's Departmental Committee on Finance and National Planning to prepare the first draft of a potential virtual asset service provider's bill. This move could make Kenya the first country in the world to have industry representatives develop a regulatory framework for cryptocurrency. On October 31, the Committee on Finance and National Planning invited BAK representatives to discuss digital asset regulation.
Allan Kakai, BAK's legal and policy director, shared the details of the meeting with local media, emphasizing the importance of developing a clear licensing and regulatory framework for Kenya to maintain its position as a leading hub for digital assets in Africa. In response, the Committee gave BAK two months to draft the crypto bill. The Committee's official account also urged the Association to undertake robust public education on cryptocurrency trade to demystify it.
In September 2023, Kenya introduced the Financial Act 2023, which required cryptocurrency exchanges to withhold 3% of the transfer or exchange value of digital assets. The BAK, which was unable to dissuade lawmakers from passing the crypto tax during a meeting in May, filed a complaint against it in the High Court of Kenya. Additionally, Kenyan authorities have taken a harsh stance against the controversial digital ID crypto project Worldcoin, with a parliamentary committee recommending that regulators shut down the project's operations in the country due to personal data harvesting concerns.
