Kenyan Government Empowers Blockchain Association to Draft Groundbreaking Cryptocurrency Regulation Bill
The Kenyan government has taken a significant step towards regulating cryptocurrencies by instructing the Blockchain Association of Kenya (BAK) to spearhead the drafting of the country's inaugural comprehensive cryptocurrency regulation bill.
Following a summons by the Departmental Committee on Finance and National Planning on October 31, BAK’s representatives engaged in discussions about the regulation of digital assets. According to Allan Kakai, BAK's legal and policy director, the committee provided the association with a two-month timeframe to formulate the bill, citing concerns that Kenya risked losing capital inflows to other African countries with clearer crypto frameworks.
This directive represents the first instance of a Kenyan parliamentary committee assigning an industry association the task of drafting legislation for potential approval and review. Kakai emphasized that previous directives of this nature had never been issued to associations representing banks, fintech, or digital lenders in the past.
The move for legislation follows the introduction of a 3% tax on crypto transfers and exchanges under the Financial Act 2023 in September, a move fiercely contested by BAK earlier this year and currently being legally challenged in the High Court of Kenya.
Amidst a recent hardline stance on cryptocurrencies, some Kenyan officials have called for the suspension of the contentious digital ID crypto project Worldcoin over privacy concerns, despite it being co-founded by OpenAI CEO Sam Altman.
To keep pace with Nigeria, South Africa, and other African nations in formulating crypto regulations, the MPs have urged BAK to simplify digital assets and assist Kenya in becoming a trailblazer in the "Silicon Savannah." Additionally, the association has been tasked with prioritizing robust public education in its draft bill.
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